Oil settled about 3% higher Thursday after the Saudi-led coalition said it intercepted six Houthi missiles, reviving supply fears. Brent settled at $106.60 and WTI at $94.61 a barrel; reports of US-Iran talks about reopening the Strait of Hormuz pared gains.
The coalition said the six ballistic missiles targeted the southern province of Taif and the Yanbu area on the Red Sea. Saudi Arabia was increasing crude pumping volumes through its East-West Pipeline to Yanbu, but tanker loadings had yet to resume, according to industry sources, satellite imagery and shipping data. Sources close to US-Iran talks in New York said negotiators were exploring a phased arrangement: Tehran would reopen Hormuz and Washington would lift its economic blockade. Sources told Reuters neither side wanted to surrender leverage.
Separately, diesel supplies were tight after Russia banned exports amid disruptions caused by Ukrainian attacks on Russian refineries and energy infrastructure; Iranian attacks on ships and Middle East energy infrastructure added pressure. Energy Secretary Chris Wright had contacted executives at several US refiners to gauge support for a voluntary diesel-export restriction, according to three people familiar with the discussions. He disputed Politico’s report that the US was preparing a 90-day ban. Analysts warned a ban could worsen global supplies and do little to lower prices.
