TLDR
- Brent crude jumped as much as 5% on Thursday before paring gains, later trading near $105-106 a barrel
- Saudi Arabia said it intercepted six ballistic missiles fired by Yemen’s Houthi militia toward Taif and Yanbu
- U.S. and Iranian negotiators are reportedly exploring a phased deal to reopen the Strait of Hormuz
- Saudi Arabia restarted its East-West pipeline after earlier attacks disrupted crude shipments to Yanbu
- U.S. crude inventories rose by 3 million barrels last week, against expectations for a draw
Oil prices swung sharply this week as attacks in the Middle East and diplomatic talks between the United States and Iran pulled the market in different directions.
Brent crude climbed as much as 5% during Thursday’s session. It later settled near $105 to $106 a barrel on Friday morning.
West Texas Intermediate crude followed a similar path. It traded near $92 to $94 a barrel after also gaining sharply on Thursday.
The moves came after Saudi Arabia’s military coalition said it intercepted six ballistic missiles fired by Yemen’s Iran-backed Houthi militia. The missiles were aimed at areas including Taif and the Yanbu region on the Red Sea.
Houthi military spokesman Yahya Saree said the group launched dozens of missiles and drones in what he called a large-scale operation against Saudi military positions in Jazan.
It took Houthi rebels less than 48 hours to seize Yemen’s Red Sea coast from pro-government forces.
But the Houthis didn’t do it alone. Iranian Revolutionary Guard advisers were in the field helping direct the battle, people familiar with the offensive told The Associated Press. pic.twitter.com/Ftiq2bJAGX
— The Associated Press (@AP) September 24, 2026
Saudi Civil Defense also issued an emergency warning in Mecca. It advised residents to follow official instructions due to a potential danger in the area.
Why Yanbu Matters to Oil Markets
Yanbu is a major Red Sea export hub connected to Saudi Arabia’s eastern oil fields. The port had already been affected by earlier damage to the kingdom’s East-West pipeline.
Saudi Arabia has been increasing crude pumping toward Yanbu. However, tanker loadings from the port had not yet fully resumed at the time of reporting.
U.S. Secretary of State Marco Rubio said this week that Saudi Arabia had restarted its East-West pipeline. This route allows oil to bypass the Strait of Hormuz.
Rubio also said the Strait of Hormuz remained open. He added that more barrels of oil were flowing through it each day.
U.S. and Iran Explore a Phased Deal
Some of Thursday’s gains were pared back after reports that U.S. and Iranian negotiators in New York are exploring a phased path out of the conflict.
The plan reportedly involves Iran reopening the Strait of Hormuz in exchange for the U.S. lifting its economic blockade on the country.
Iranian President Masoud Pezeshkian said Tehran was ready for negotiations to end the conflict. He added that Iran would not give up its nuclear program or accept what he called U.S. bullying.
An adviser to Iran’s Supreme Leader said Tehran could expand the conflict to the Indian Ocean if the U.S. or Israel launches another attack.
U.S. Central Command said it had redirected 115 commercial vessels as of Wednesday. This was part of its enforcement of the naval blockade on Iran.
Reuters reported that only 17 commodity vessels crossed the Strait of Hormuz over one recent weekend. That compares with a pre-war average of about 125 vessels a day.
On the supply side, U.S. commercial crude stocks rose by 3 million barrels in the week ended September 18. Analysts had expected a draw of 641,000 barrels instead.
Gasoline inventories fell 1.7 million barrels during the same week. Distillate inventories declined by 400,000 barrels.
Diesel prices in the U.S. also climbed to record levels this week. The Trump administration is looking at ways to boost domestic diesel supplies.
Energy Secretary Chris Wright has reportedly contacted executives at major refiners about a voluntary restriction on diesel exports.
Reuters had earlier reported discussions of a possible 90-day export ban on diesel. The White House has denied that such a ban is being planned.
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