Oil futures rose Wednesday as geopolitical risks in the Middle East offset recent supply improvements. Brent crude for December delivery gained 0.93% to $101.52 a barrel, while U.S. West Texas Intermediate for November advanced 0.81% to $90.16 per barrel.
Saudi Arabia's East-West Pipeline has recovered to 5.8 million barrels as of Tuesday morning, according to Saudi Energy Minister Prince Abdulaziz bin Salman. Despite this recovery, traders remain focused on disruption risks. Yemen's Iran-backed Houthis attacked Saudi airports in Jazan and Najran on Tuesday, marking renewed hostilities that threaten crude flows from the region.
Separately, Iran has stepped up attacks on tankers transiting the Strait of Hormuz, a crucial chokepoint for global oil exports. These developments have renewed trader concerns over supply stability.
Naeem Aslam, chief investment officer at Zaye Capital Markets, characterized the market as "caught between improving physical supply and persistent geopolitical risk."
Samer Hasn, senior market analyst at forex trading platform XS.com, warned that Houthi capabilities pose material risk. "The sustained ability of the Houthis in Yemen to target oil facilities hundreds of kilometers from the border keeps the risks of a renewed large-scale crude supply disruption present and high, and these risks could worsen if the Houthis feel the need to apply more pressure as a result of losing more territory," Hasn said.
The tension reflects the fragility of Middle East oil markets. While production has begun recovering, military attacks and geopolitical escalation create uncertainty over sustained supply flows. Oil traders are balancing near-term supply improvements against the possibility of fresh disruptions from regional conflicts.