WTI Crude Tops $110 and Brent Hits Five-Month High of $111.05 on Houthi Strikes Against Saudi Energy Infrastructure

Oil prices surged sharply on Tuesday, October 20, as Houthi militants launched a wave of attacks on Saudi energy and military targets, including an Aramco site in Yanbu, the Shaybah oilfield, and two Saudi airports. WTI crude climbed as much as 4.2% to around $107.50 a barrel in early New York trading and later pushed above $110, while Brent reached a five-month high of $111.05, its loftiest level since May 20. The moves mark a rally of more than 17% from WTI's October 6 lows.

The strike campaign intensified an already elevated risk premium tied to the Strait of Hormuz, through which an estimated 20% of global petroleum transits daily. At least 18 vessels were reported attacked over a two-week span, according to shiptracker Kpler, and US CENTCOM has been shepherding tankers out of the strait to maintain flows. TankerTrackers noted that the effort created a race for both oil and tankers, contributing to the multi-month Brent uptrend that began in early July when a fragile memorandum of understanding on flows effectively collapsed.

Asia LNG prices also spiked, with the JKM benchmark hitting $30.01 per million BTU, its highest since December 2022 and up 172% year over year. Diesel futures climbed roughly six cents to approach $5 a gallon. Energy equities gained in premarket trading, led by ExxonMobil and Chevron. Analysts warned that sustained prices above $100 per barrel risk reigniting inflation and complicating central bank policy across major economies.