Crude Oil Prices Rise on Middle East Supply Concerns as Shipping Risks Mount | October 21, 2026

Crude oil prices edged higher on Wednesday as concerns over Middle East supply disruptions intensified, as per news reports. Risks to Red Sea shipping, attacks on vessels and threats to Saudi energy infrastructure kept traders focused on potential interruptions to crude oil flows.  

Brent crude futures rose 0.78% to US$109.64 per barrel, while US West Texas Intermediate (WTI) crude gained 0.78% to US$98.58 as of 0022 GMT. 

Vessel Attacks Raise Concerns Over Oil Supply Routes 

Iran’s Revolutionary Guards Navy said a supertanker caught fire after striking a sea mine south of the Strait of Hormuz, alleging that the vessel had violated Iranian regulations. Shiptracker Kpler reported at least 18 vessel attacks over two weeks.  

As per LSEG report, attacks had spread beyond the Strait of Hormuz to the Gulf of Oman, threatening oil loadings and ship-to-ship transfers used to sustain regional supplies. 

Attacks on Saudi Energy Facilities Add to Market Concerns 

Yemen’s Houthis claimed responsibility on Monday for attacks on a Saudi Aramco site in Yanbu, the Shaybah oilfield and airports in Riyadh and Abha. Separately, fighting intensified in Yemen, with the death toll from a Houthi attack on government forces rising to 73. 

Oil Prices Recover After Previous Session’s Decline 

Prices had fallen in the previous session after Iran’s president discussed mediation efforts with Pakistan’s army chief in Tehran. Brent crude settled down US$0.76, or 0.69%, at US$108.79 per barrel on Tuesday, after reaching US$111.99, its highest level in five months. 

The November WTI contract, which expired on Tuesday, settled US$1.87 lower at US$101.79 per barrel, marking a decline of 1.8%. 

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Diplomatic Efforts and US Fuel Supplies Remain in Focus 

Iranian Foreign Minister Abbas Araqchi said Iran had not received a response from Saudi Arabia or Yemen’s Houthis to its offer to help broker peace talks. In the United States, Energy Department officials said they were working with refiners worldwide to increase fuel production amid rising diesel prices and shortages. US crude oil inventories and fuel product stocks were also expected to have declined last week. 

Conclusion 

Oil prices remained sensitive to shipping disruptions, attacks on energy infrastructure and diplomatic developments across the Middle East. Traders were also monitoring US fuel production efforts and inventory data as concerns over regional supply continued. 

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