The price of Brent crude oil today reached $111.10 per barrel, indicating an increase of about 2 percent compared to yesterday. This price increase occurred following recent Houthi attacks on Saudi targets and the issuance of a directive by the U.S. federal government for non-essential personnel to leave Saudi Arabia.
Houthi Attacks and Impact on Oil Prices
The Houthis attacked an oil field in Saudi Arabia as well as an international airport, raising concerns about the security situation in one of the world's key oil regions. In this context, the price of West Texas Intermediate crude oil also reached $98.98 per barrel.
Security Situation and Iran's Reactions
Meanwhile, Iranian media reported explosions in the southern part of the country, but did not provide further details about the nature or source of these explosions. Additionally, Abbas Araqchi, Iran's foreign minister, stated in an article for an international media outlet that Iran is ready to defend itself and deemed the likelihood of reaching a peace agreement low.
Araqchi expressed distrust towards the U.S. government, referring to two instances of U.S. attacks on Iran during nuclear negotiations. On the other hand, Masoud Pezeshkian, the President of Iran, stated that peace negotiations cannot continue under conditions where the United States has imposed sanctions against Iran and issued threats against the country.
With this trend, the prospect of peace in the Middle East seems unlikely, which will have repercussions on oil and gas trade. Commodity analysts at ING also noted updates regarding Kuwait's oil production, which has reached a daily total of over 2 million barrels. Despite this positive development, the CEO of Kuwait Oil Company pointed out issues related to fuel production and noted that flows remain significantly below pre-war levels.
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