Oil prices rise as renewed attacks and geopolitical tensions return to focus

Oil prices advanced on Wednesday after Yemen's Houthi movement claimed responsibility for a missile attack targeting a Saudi oil tanker in the Red Sea, dampening hopes for easing tensions with Iran and restoring shipping activity and oil supplies across the region.

Brent crude futures rose $1.51, or 1.9%, to $80.87 per barrel, while US West Texas Intermediate (WTI) crude gained 90 cents, or 1.19%, to $76.67 per barrel.

Attack revives supply and shipping concerns

The Houthis said they had targeted a Saudi oil tanker off the port of Yanbu, one of Saudi Arabia's key crude oil export terminals, supporting oil prices. Saudi authorities have not yet issued an official comment on the incident.

Peace talks and supplies remain in focus

The gains followed a more than 5% decline in oil prices on Tuesday after Qatari officials reported progress in mediation efforts aimed at ending the conflict, pushing Brent to close below $80 per barrel for the first time since July 13.

Meanwhile, Tehran denied that any peace negotiations were taking place, contradicting statements made by US President Donald Trump.

Before the conflict erupted, roughly 20% of global oil and liquefied natural gas supplies passed through the Strait of Hormuz.

In the United States, data from the American Petroleum Institute showed that crude oil and gasoline inventories increased last week, while distillate stockpiles declined. At the same time, China continued easing restrictions on fuel exports during August.