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Oil rises amid growing Mideast tensions between Iran-backed Houthis and Saudi Arabia

Oil prices climb as Middle East tensions escalate between Iran-backed Houthis and Saudi Arabia, with concerns over supply disruptions from potential conflict in the strategic Strait of Hormuz. Commodity traders predict oil could rally another $20-$25 per barrel amid the geopolitical crisis.

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Oil rises amid growing Mideast tensions between Iran-backed Houthis and Saudi Arabia

On Wednesday, oil prices experienced an uptick, driven by concerns over potential supply disruptions resulting from escalating tensions in the Middle East, specifically between Iran-backed Houthis and Saudi Arabia.

Futures for the international benchmark Brent crude for December delivery rose by 1.24%, reaching $107.02 per barrel. Additionally, U.S. West Texas Intermediate futures for November increased by 1.18%, landing at $95.25 per barrel.

Escalating Conflict

The conflict between Saudi Arabia and the Iran-backed Houthis intensified following a notable attack on Riyadh's primary airport attributed to Houthis in Yemen supported by Tehran.

Reports from Al Jazeera indicate that a Saudi-led coalition targeted Houthi energy terminals and fuel reserves in Yemen, with a spokesperson asserting that measures were implemented to mitigate "collateral damage on civilians."

U.S.-Iran Tensions

Simultaneously, tensions remain high between the U.S. and Iran.

The U.S. Central Command refuted statements made by the commander of Iran's Islamic Revolutionary Guard Corps Navy, which claimed that the Strait of Hormuz falls under Iran's jurisdiction and that any U.S. Navy warships approaching would be "sunk."

CENTCOM responded via a post on X, stating, "RGC's navy commander has no navy," and emphasized that "American forces and regional partners clearly control the Strait of Hormuz."

Commodity Outlook

According to hedge fund manager and renowned commodity trader Paul Tudor Jones, oil prices could potentially rise by an additional $20-$25 due to the ongoing conflict involving Iran. During his appearance on CNBC's "Squawk Box," Jones expressed a bullish stance on oil.

"I am long oil... bullish on oil... I think it can rally another $20 or $25 bucks," stated the founder and chief investment officer of Tudor Investment.

He further noted, "If there were to be any developments that might improve the situation, it would have occurred prior to the midterms."

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