Oil prices rose again on Wednesday after Houthi attacks on Saudi Arabian infrastructure heightened fears of further disruptions to crude supply from the Middle East, adding fresh risk premium to an already volatile market.
As at the time of writing 04:21 am (WAT), Brent crude was trading at $101.60 per barrel, up 0.99%, while US West Texas Intermediate (WTI) stood at $90.20, representing a 0.85% gain.
The latest rally reflects a renewed supply-risk premium in the oil market after attacks by Yemen’s Iran-backed Houthi rebels targeted Saudi Arabia, raising concerns that escalating regional hostilities could threaten crude production, refining and export infrastructure. Saudi Arabia said its airports in Jazan and Najran were targeted in attacks on Monday.
At the same time, a storm developing in the Gulf of Mexico is expected to become the first Atlantic hurricane of 2026 and could disrupt US oil and gas production. Offshore areas in the storm’s projected path account for about 15% of US crude production and 5% of natural gas output, while refineries along the US Gulf Coast account for roughly half of the country’s refining capacity.
The developments have temporarily shifted market attention away from the increase in Middle Eastern crude shipments. About 12 million barrels per day of crude and two million barrels per day of refined products have reportedly moved out of the Middle East over the past seven to 10 days, while Saudi Arabia’s East-West pipeline has restored crude pumping capacity to 5.8 million barrels per day.
However, the additional supply has not eliminated the market’s vulnerability to another disruption. Persisting attacks, elevated shipping risks and uncertainty over US-Iran relations are keeping traders cautious, with analysts warning that further attacks on energy infrastructure could tighten an already fragile market.
The oil market is also dealing with depleted inventories and elevated tanker costs. The US Energy Information Administration said heightened risks for tankers operating in the region have increased shipping costs and the risk premium embedded in crude prices, while longer routes around conflict zones have reduced vessel availability.
The renewed rise also comes despite the Group of Seven’s plan to release 100 million barrels of emergency crude and diesel stocks, a move intended to ease supply pressure and high fuel prices. The International Energy Agency is expected to work out details of the release, meaning the immediate impact on physical supply remains uncertain.
For Nigeria, the renewed strength in Brent is significant because sustained prices above $100 could improve the value of the country’s crude exports and government oil revenues, although higher global prices also carry implications for domestic fuel costs and inflation. The immediate market focus remains on whether Middle East tensions and the US storm translate into actual supply disruptions or remain largely a risk premium.