Brent crude oil prices remain elevated above USD 100 per barrel as markets react to a sharp escalation in Houthi attacks targeting Saudi infrastructure, particularly Riyadh’s main airport, according to Commerzbank strategists [1]. The repeated strikes—four on Riyadh’s airport in a single week—have heightened geopolitical risk and raised concerns about potential US involvement and further disruption to energy flows from the Persian Gulf [1].
Last Friday, Brent crude edged up 0.4% to USD 104.72 and posted a weekly gain of 2.4% [1]. The dominant market narrative over the weekend was the intensifying conflict, which is expected to set the tone for Asian markets at the start of the week [1]. However, in early Asian trading today, Brent prices erased earlier gains, falling 1.1% to below USD 104 per barrel, though they continued to hold firmly above the USD 100 threshold, supported by persistent supply risks in the Middle East [1].
Commerzbank highlights that the risk premium in Brent prices remains elevated due to ongoing tensions and the possibility of broader geopolitical escalation, which could further disrupt energy flows from the region [1].
CONCLUSION
Brent crude oil prices are being supported by heightened geopolitical risks stemming from repeated Houthi attacks on Saudi infrastructure. The elevated risk premium reflects market concerns about potential escalation and supply disruptions, keeping Brent firmly above USD 100 per barrel. Persistent Middle East tensions are likely to continue underpinning oil prices in the near term.