Key Highlights

● Brent crude settled at $115.32 a barrel, up $1.44.

● WTI settled at $102.78, back above $100.

● US crude inventories fell more than expected.

● Energy stocks led gains in the broader market.

Brent crude, the global oil benchmark, settled at $115.32 a barrel, up $1.44, while US benchmark West Texas Intermediate settled at $102.78, up $2.88, back above $100. The gains reflected a familiar mix of geopolitical risk and supply concerns that has kept oil elevated.

The main driver was a claim by Yemen's Houthis that they fired a ballistic missile at Saudi Arabia's Ras Tanura refinery, one of the most strategically important energy sites in the Gulf, a claim Riyadh has not confirmed.

A Region Still on Edge

A day later, the Houthis attacked Aden airport, according to market commentary, and oil has held above $100 since a broader Middle East conflict began. Analysts have flagged the risk of renewed US strikes on Iran after the November 3 midterm elections.

Efforts to calm the region have not gained traction, 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 to try to revive talks.

US Supply and Market Impact

Fresh data from the Energy Information Administration showed US crude inventories fell by a larger-than-expected amount last week, while gasoline stocks rose. Energy stocks were among the leaders in the S&P 500, with refiner Phillips 66 climbing after strong results.

Oil's strength also fed into the bond market, with long-dated Treasury yields climbing, as high oil prices complicate the Federal Reserve's inflation fight even as the broader market finished higher.