Last Updated on 14/10/2026
- Houthi strikes targeting Saudi Aramco’s headquarters and Riyadh airport heightened concerns about major disruptions to regional oil supplies.
- Tehran stepped up attacks on tankers transiting the Strait of Hormuz, although US naval operations helped safeguard shipping movements.
- OPEC+ oil output climbed by 900,000 barrels per day in September, fueled largely by a substantial 2 million bpd increase in Saudi Arabia’s production.
West Texas Intermediate (WTI) crude oil extends its rally for a fifth straight session, trading near $94.30 per barrel during Asian trading on Wednesday. Oil prices continue to climb as escalating clashes involving Saudi Arabia and Iran-backed Houthi rebels intensify concerns over potential disruptions to Middle Eastern oil supplies.
Yemen’s Houthi rebels launched a missile strike on Tuesday that hit Saudi Aramco’s headquarters in Dhahran, triggering a fire in part of the facility. The incident followed a rebel attack on Riyadh’s main airport over the weekend and a renewed offensive by a Saudi-led coalition seeking to reclaim territory controlled by the Houthis in Yemen.
Meanwhile, tensions have increased around vital maritime routes as Iran stepped up attacks on oil tankers passing through the Strait of Hormuz. Despite the growing security threats, the United States said its efforts had helped ensure the safe transit of more than 19 million barrels of crude oil through the strategic waterway.
Despite persistent shipping disruptions around the Strait of Hormuz, OPEC+ recorded a significant increase in oil production in September. The alliance, comprising OPEC members and partner producers such as Russia, raised output by approximately 900,000 barrels per day (bpd) from August to an average of 39.07 million bpd, according to OPEC’s monthly report released on Tuesday. Saudi Arabia accounted for much of the increase, reporting production of 8.372 million bpd, more than 2 million bpd above the previous month.
Elsewhere, market participants remained optimistic that a US-Russia agreement concerning diesel exports could potentially release additional Russian supplies into the market. However, the Kremlin rejected any direct connection between the diesel export arrangement and its position on peace negotiations over Ukraine. The statement followed a Reuters report claiming that US representatives had told Ukrainian officials that allowing Russian diesel exports formed part of Washington’s efforts to encourage Moscow to resume negotiations toward a possible peace deal.
Energy markets remain resilient amid rising geopolitical risks
TD Securities noted that strength across the energy sector remains difficult to undermine as tanker attacks intensify. The assessment highlights the oil market’s continued resilience, with geopolitical uncertainty and growing threats to critical shipping routes providing support for crude prices despite the potential for increased production from major oil-producing nations.
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