Oil reclaims $110 on rising Middle East shipping risks

October 21, 2026 (MLN): Oil prices edged up on Wednesday amid mounting concerns over supply disruptions, as attacks on shipping routes spread beyond the Strait of Hormuz and threats to Saudi Arabia’s energy infrastructure heightened market uncertainty.

Currently, Brent crude futures is up, 1.46%, at $110.38 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $1.30, or 1.33%, to $99.12 per barrel by [10:38 pm] PST.

Iran’s Revolutionary Guards Navy said a supertanker caught fire after hitting a sea mine south of the Strait of Hormuz, alleging that the vessel had violated Iranian regulations, Iranian media reported on Tuesday. Ship-tracking firm Kpler reported at least 18 attacks on vessels over the past two weeks.

LSEG analysts noted that tanker attacks had extended beyond the Strait of Hormuz, with Iran targeting vessels as far south as the Gulf of Oman. The developments have raised concerns over oil loadings outside the Arab Gulf and ship-to-ship transfers supporting regional crude shipments, as reported by CNBC.

Meanwhile, Yemen’s Houthi movement claimed responsibility on Monday for attacks targeting a Saudi Aramco facility in Yanbu, the Shaybah oilfield, and airports in Riyadh and Abha. Separately, the death toll from a Houthi attack on Yemeni government forces on Monday climbed to 73 as clashes intensified.

Oil prices had declined in the previous session following a meeting in Tehran between Iran’s president and Pakistan’s army chief, during which mediation efforts were discussed.

Iranian Foreign Minister Abbas Araqchi said in a television interview aired on Tuesday that Tehran had yet to receive a response from Saudi Arabia or Yemen’s Houthis to its offer to help facilitate peace talks.

In the United States, two Energy Department officials said on Tuesday that they were working with refiners worldwide to increase fuel production amid rising prices linked to a diesel shortage.

Meanwhile, US crude inventories were expected to have declined last week alongside refined-product stockpiles, according to an extended Reuters poll published on Tuesday. Eight analysts surveyed by Reuters estimated an average draw of around 800,000 barrels in crude stocks for the week ended October 16.

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