Oil Prices Rise as Hormuz Attacks and Houthi Strikes Revive Supply Fears

Oil Prices Rise as Hormuz Attacks and Houthi Strikes Revive Supply Fears

Published October 7, 2026 · Finance-Solutes.com Research Desk

Oil prices rise on Wednesday as attacks near the Strait of Hormuz and fresh Houthi strikes on Saudi Arabia keep Middle East supply risks in focus. Fresh data from the American Petroleum Institute (API) also showed a drop in US crude stockpiles.

West Texas Intermediate (WTI) futures gained about 0.6% to $89.97 a barrel at 06:38 Hanoi time (23:38 GMT). Brent futures settled on Tuesday at $100.58 a barrel, according to CNBC. The gains extend Tuesday’s modest rebound, but prices remain well below the highs seen earlier this autumn.

Investor takeaway: Crude is trading on headlines rather than one clear trend. Rising Gulf exports and the G7 reserve release cap rallies. Tanker attacks and strikes on Saudi infrastructure keep a risk premium in place around $100 for Brent.

Attacks Near Hormuz and in Saudi Arabia Lift the Risk Premium

Tanker attacks around the Strait of Hormuz have increased in recent weeks, even as traffic through the waterway recovers. Reuters reported that Middle East crude exports rose above pre-war levels on four of the seven days in the last week of September.

The fighting between Saudi Arabia and Iran-backed Houthi forces in Yemen is adding to the tension. On Monday, the Houthis said they attacked several sites in Saudi Arabia. These included an Aramco refinery in Rabigh, King Khalid International Airport in Riyadh and Abha airport.

Saudi-backed Yemeni government forces also advanced on Monday to retake the coast around the Bab el-Mandeb Strait, up to the city of Mocha. In time, that could ease risks to Red Sea shipping. However, the Houthi response shows the fighting is still escalating.

G7 Reserve Release and Strong Exports Cap the Gains

Reports of stronger Middle East supply have limited the upside for crude. The Group of Seven (G7) agreed last Friday to release 100 million barrels of diesel and crude oil from emergency reserves. The group also pledged to avoid energy export restrictions. It has not yet given a breakdown of volumes or participating countries.

Saudi Aramco also cut its November Arab Light price for Asian buyers to $5 a barrel below the regional benchmark. That suggests stronger competition for market share as flows recover.

Stockpiles remain a concern, though. US Strategic Petroleum Reserve inventories fell to 283 million barrels last week, the lowest since October 1982, according to Department of Energy data. Aramco CEO Amin Nasser has said that refilling global stockpiles after emergency withdrawals could take two years.

US Crude Inventories Fall, Official Data Due Later Today

API data released late Tuesday showed US crude stocks fell by 2.09 million barrels in the week ended October 2. Gasoline inventories also declined, while distillate stocks rose slightly.

The API figures often hint at the direction of the official numbers, but the two can differ. The Energy Information Administration (EIA) is due to publish its weekly report later on Wednesday. Traders are also watching a storm heading for US Gulf oil-producing regions, which could disrupt output and refining.

What Higher Oil Prices Mean for Investors

• Energy producers: Elevated crude supports earnings, but prices can swing sharply on a single headline. Brent fell $1.93 on Monday before edging higher on Tuesday.
• Fuel-heavy sectors: Airlines, shipping and logistics firms face higher costs when crude stays near $100.
• Inflation and rates: Persistent energy prices can feed into inflation, which central banks are watching closely.
• Risk management: Sudden moves are common in this market. Position sizing and diversification matter more than predicting any single headline.

Key Events to Watch Next

Traders will focus first on the EIA inventory report later today. Beyond that, the key drivers are the details of the G7 reserve release, the pace of Gulf exports, and any new attacks on tankers or Saudi energy sites. Any shift in US-Iran talks over the Strait of Hormuz could also move prices quickly.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial or investment advice. Oil prices move quickly, so always check real-time data before making any investment decision. For personalized guidance, Finance-Solutes.com’s free courses and expert advisors can help you turn market news like this into a strategy that fits your own portfolio.

Source: Investing.com, CNBC, Reuters, American Petroleum Institute

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