Oil Surges as Houthis Strike Aramco Facilities and Tankers Explode in Hormuz

Crude oil prices rose on Friday, driven by mounting concerns over Middle Eastern supply. Brent crude reached $115.74 per barrel with a 0.75% increase, while U.S. crude WTI hit $102.72, up 0.71%.

Iran-backed Houthis in Yemen announced targeting Saudi Arabia's largest oil refinery at Ras Tanura, in addition to the Rabigh refinery and Aramco's facility at Yanbu. In response, the Saudi-led coalition announced it intercepted a cruise missile headed toward western Saudi Arabia.

In the Strait of Hormuz, the Iranian Revolutionary Guards reported that three tankers exploded and caught fire after striking naval mines while attempting to use an unauthorized route south of the strait. These incidents have raised serious concerns about the safety of oil shipments through this vital waterway.

On the major energy companies front, executives at ExxonMobil and Chevron canceled their plans to participate in a major oil exhibition scheduled to take place in the United Arab Emirates next week.

Both benchmarks are set to close the month with consecutive gains for the fourth consecutive month; Brent is expected to record a monthly rise of around 14%, while WTI is approaching a monthly gain of 15%, marking the first monthly close above $100 since April.