Noida, Sep 25 (APAC Media): Oil prices eased on Friday after reports of potential U.S.-Iran cooperation to reopen the Strait of Hormuz reduced fears of prolonged supply disruptions, although fresh Houthi attacks on Saudi targets underscored the continuing risks to the region’s energy infrastructure.
Brent crude futures for November delivery fell 0.82% to $105.73 a barrel, while West Texas Intermediate (WTI) crude declined 1.54% to $93.15 a barrel at 10:30 AM IST.
Therefore, both benchmarks had gained as much as 5% during the previous session before trimming their advances following reports of renewed US-Iran diplomatic efforts. Brent, the global oil price benchmark, rose more than 3% on Thursday, briefly surpassing $108 a barrel before settling above $106.50.
Brent had eased to around $105.77 a barrel as traders assessed the possibility that diplomatic efforts could reduce risks to shipping through the Strait of Hormuz, a key route for global energy supplies.
At the same time, concerns over attacks on Saudi energy infrastructure continued to support prices.
Yemen’s Iran-aligned Houthi group said on Thursday it had launched missile and drone attacks against a “sensitive target†in Riyadh and Aramco facilities in the Red Sea port city of Yanbu.
The Houthi-run Yemen News Agency quoted the group as saying both operations “achieved their objectives successfully.â€
Saudi Arabia said it intercepted six ballistic missiles fired from Yemen toward areas including Taif and the Yanbu region. Saudi authorities did not immediately confirm whether the attacks caused damage or casualties.
The attacks have renewed concerns over Saudi Arabia’s oil infrastructure and export routes, particularly after earlier damage to the kingdom’s East-West pipeline disrupted crude shipments to Yanbu.
Yanbu is a major Red Sea export hub linked to Saudi Arabia’s eastern oil fields. Saudi Arabia has been increasing crude flows toward the port, although tanker loadings there had not yet fully resumed.
The latest attacks came as Washington and Tehran pursue renewed diplomatic efforts to resolve their seven-month conflict on the sidelines of the United Nations General Assembly in New York.
Iranian President Masoud Pezeshkian said on Thursday that he hoped Washington would return to its Memorandum of Understanding aimed at ending the war, which lapsed in mid-August without a peace agreement.
Pezeshkian expressed he hoped the United States would return to the understanding before the US midterm elections in November.
The developments leave oil markets balancing two competing forces: diplomatic efforts that could ease supply risks and continuing military tensions that threaten key energy infrastructure and shipping routes.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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