Oil Prices Rise After Houthis Strike Saudi Tanker

Crude oil prices climbed on Wednesday following a missile strike by Houthi militants on a Saudi Arabian tanker near the coast of Yanbu in the Red Sea. Brent crude rose 1% to $80.15 a barrel, and West Texas Intermediate futures increased 0.28% to $75.98.

The price increase followed a volatile period in which oil costs had dropped 6% on Tuesday. That decline was driven by market optimism that a deal to ensure freedom of movement in the Strait of Hormuz was imminent, after Donald Trump canceled a planned attack on Iran to pursue negotiations. Treasury Secretary Scott Bessent had suggested such a deal could be reached within the week.

Despite the attack in the Red Sea, the United States Central Command confirmed that the southern route of the Strait of Hormuz remains free and open to commercial vessels.