Brent Tops $112 as Gulf Supply Risks Rise

Oil prices surged to five-month highs Thursday, with Brent briefly topping $112 a barrel and U.S. West Texas Intermediate approaching $100, as Houthi attacks in Saudi Arabia and reported strikes on Gulf shipping heightened fears of renewed supply disruptions. The attacks killed civilians and damaged energy facilities; Saudi Aramco reportedly told staff to evacuate its Dhahran headquarters, and the U.S. ordered some diplomats’ families to leave the region. Prices were also supported by concerns that U.S.-Iran hostilities could escalate after the U.S. midterm elections, although oil exports from much of the Gulf had recovered toward prewar levels. Elevated freight and insurance costs and expectations of falling U.S. inventories also supported prices, while a possible recovery in Russian supply could ease pressure. Higher energy costs revived inflation concerns and unsettled investors, and analysts warned of sharp price moves as the conflict and physical oil availability remained uncertain.