Oil trades near five-month high as Gulf shipping attacks fuel supply fears

• Brent crude traded near a five-month high, reaching $110.08 a barrel on Tuesday as attacks on vessels heightened supply concerns

• At least 18 vessels have been attacked in two weeks, according to Kpler, although Gulf crude exports are recovering

• Indian equity markets are closed for Dussehra; MCX trading resumes at 5 pm after the morning-session closure

Global oil prices rose on Tuesday, with Brent crude trading near a five-month high as attacks on Gulf shipping and escalating West Asia tensions kept traders concerned about disruptions to energy supplies.

Brent, the international benchmark, gained as much as 53 cents, or 0.48 per cent, to reach $110.08 a barrel. It had touched $110.70 in the previous session, its highest level since 20 May.

US West Texas Intermediate crude advanced 45 cents, or 0.46 per cent, to $99 a barrel.

The gains reflected a continuing geopolitical risk premium as traders assessed attacks on vessels, renewed Houthi strikes and tensions involving Iran. Attacks on a Yemeni military training camp and strikes targeting Saudi energy infrastructure, airports and military facilities added to concerns about regional security.

Shipping-tracking firm Kpler said at least 18 vessels had been attacked over the past two weeks, underscoring the risks facing maritime trade and oil transport.

Brent has risen nearly 80 per cent this year as conflict involving the United States and Iran, alongside the escalating Russia–Ukraine war, disrupted supplies and raised uncertainty over global crude flows.

However, recovering exports from Gulf producers offered some relief to the supply outlook.

US energy secretary Chris Wright said crude flows had returned to approximately 80 per cent of their pre-war levels, according to reports. Shipments of refined petroleum products remained constrained.

Iraq’s oil minister said the country’s crude exports had exceeded 3.4 million barrels a day so far this month. Volumes were approaching pre-war levels after Iraq offered substantial discounts to regional benchmark prices.

The recovery in shipments has yet to remove the risk premium from oil prices, with continued attacks leaving traders alert to further disruption.

In India, the Dussehra holiday has interrupted domestic trading. The Multi Commodity Exchange of India is closed from 9 am to 5 pm, with trading scheduled to resume for the evening session at 5 pm.

Investors will then be able to trade crude oil, gold, silver and base metals.

The Bombay Stock Exchange and National Stock Exchange remain closed for the day, with trading suspended across their major segments.

With IANS inputs