Key Highlights

● Oil prices stayed elevated on fresh attack claims.

● The Houthis claimed strikes on a Saudi refinery and an airport.

● Traders are pricing in a risk premium for potential disruptions.

● US inventory data also supported higher prices.

Oil prices stayed elevated as a fresh round of attacks by Yemen's Houthis kept traders on edge, with West Texas Intermediate crude settling back above $100 a barrel and Brent, the international benchmark, also climbing. The moves reflect what traders call a risk premium, an extra amount built into prices to account for the chance that supply could be disrupted.

On the day before, the Houthis claimed a ballistic-missile attack on Saudi Arabia's Ras Tanura refinery, Riyadh has not confirmed the attack, and a day later the group attacked an airport in Yemen, according to market summaries.

Why Ras Tanura Matters

Ras Tanura is one of the most important energy facilities in the world, home to a major refinery and one of the largest oil export terminals, so even an unconfirmed claim of an attack on such a site is enough to put traders on alert.

The attacks come against an already tense backdrop, with oil holding above $100 since a broader Middle East conflict began, and analysts flagging the risk of renewed US strikes on Iran after upcoming midterm elections.

Diplomacy and Market Reaction

Diplomacy is also in motion, with Qatar presenting Iran a new draft deal, though an Iranian official called it unacceptable, and a report saying a senior US official wrote to an Iranian hard-liner in an effort to revive talks, meaning the risk premium could rise or fall quickly depending on events.

Fundamental data also supported prices, with the Energy Information Administration reporting that US crude inventories fell more than expected last week, and energy stocks were among the best performers in the S&P 500, with refiner Phillips 66 climbing after strong results.