Key Highlights

● Oil prices surged on fresh Middle East tensions.

● West Texas Intermediate settled back above $100 a barrel.

● The Houthis claimed an attack on Saudi Arabia's Ras Tanura refinery.

● US crude inventories also fell more than expected.

Oil prices surged as fresh Middle East tensions pushed US crude back above the $100 mark. West Texas Intermediate crude settled at $102.78 a barrel, up $2.88, while Brent crude, the international benchmark, settled at $115.32, up $1.44.

The catalyst was a claim from Yemen's Houthis that they launched a ballistic missile at Saudi Arabia's Ras Tanura refinery, a facility that sits on the Gulf coast and is one of the kingdom's most important energy sites. Riyadh has not confirmed the attack.

The Ras Tanura Claim

The Houthis followed that with an attack on Aden airport a day later, according to market commentary, reviving worries about supply disruptions in a region already on edge. Oil has held above $100 since a broader Middle East conflict began, with analysts flagging the risk of renewed US strikes on Iran after the November 3 midterms.

Diplomacy has been rocky too, with Qatar presenting Iran a new draft deal that an Iranian official called unacceptable, while a report said Vice President JD Vance wrote to an Iranian hard-liner in an effort to revive talks.

Inventories Added Fuel

US supply data also supported prices, with the Energy Information Administration reporting that crude stockpiles fell by a larger amount than expected last week, while gasoline inventories rose.

Energy stocks were among the best performers in the S&P 500 the same day, with refiner Phillips 66 climbing after strong results and a dividend increase, while the broader market finished higher despite the energy-driven inflation concerns.