Crude markets put a higher price on Middle East risk on Wednesday after the Houthis said they had attacked Saudi Arabia’s Ras Tanura refinery, the country’s largest, with a ballistic missile on Tuesday. Investors were weighing the prospect of a prolonged and widening conflict.
International benchmark Brent crude futures rose $1.50, or 1.32%, to $115.59 per barrel. U.S. West Texas Intermediate crude futures gained $1.47, or 1.47%, to $101.37 per barrel.
Fears of disruptions to oil flows have kept a geopolitical risk premium in crude prices.
At a campaign rally in Texas on Tuesday, Trump said the war with Iran would end “on his terms” and said Tehran must be prevented from acquiring nuclear weapons. He said the conflict could be brought to a swift conclusion if any agreement ensured Iran would never possess a nuclear weapon. Trump also said he was weighing a deal with Tehran against further military action.
Separately, Israel’s election appeared headed for a political stalemate. Prime Minister Benjamin Netanyahu and his main challenger, Gadi Eisenkot, had no clear route to a governing majority, according to preliminary exit polls. The rival blocs were projected to fall short of the 61 seats needed to control Israel’s 120-member parliament.
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