Oil prices fell in Asian trading on Monday, retreating from near six-month highs reached late last week, although continued Houthi attacks on Saudi Arabia kept concerns about potential disruptions to Middle East energy supplies in focus.

Brent Oil Futures expiring in December fell 1.1%, to $115.40 a barrel by 20:54 ET (00:54 GMT), while U.S. West Texas Intermediate crude futures dropped 1.4%, to $101.88 a barrel.

Both benchmarks had climbed nearly $3 on Friday after attacks by Yemen’s Iran-aligned Houthi movement heightened concerns about the security of energy infrastructure in Saudi Arabia, the world’s largest oil exporter.

Brent settled at $116.72 a barrel on Friday, its highest closing level since April 29, and gained about 6% over the week. WTI settled at $103.27, up 2.3% for the week.

The attacks continued over the weekend, with the Houthis claiming responsibility for strikes targeting a Saudi airport and oil facilities on Saturday. Saudi Arabia said on Sunday it had intercepted additional missiles and drones.

The kingdom partially resumed operations at its main airport on Sunday after damage sustained in an earlier round of attacks, although the Houthis vowed to continue targeting the facility.

The escalation has raised concerns that further attacks could threaten oil production, export infrastructure and regional shipping routes, adding a geopolitical risk premium to crude prices.

U.S. President Donald Trump told Fox News on Sunday that it was "getting to be decision time" on whether to strike a deal with Tehran or "finish it off", raising the prospect of renewed hostilities after months of conflict.

Iranian Foreign Minister Abbas Araghchi, meanwhile, said that if rationality prevailed, the United States would not attempt another attack.

The security situation around the Red Sea has also deteriorated as the Houthis have pushed towards the Bab el-Mandeb Strait, a strategic chokepoint connecting the Red Sea with the Gulf of Aden.

Separately, Libya’s National Oil Corporation said last week that a pipeline valve linking the Hamada and Tahara oilfields to the Zawiya port had been shut, reducing production at both fields and adding to concerns about supply availability.

Source: Investing.com

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