Oil prices rose on Wednesday as renewed fighting between Saudi Arabia and Yemen’s Houthis spurred more concerns over supply disruptions in the Middle East.

Renewed attacks on shipping through the Strait of Hormuz also added to fears of more supply disruptions, as did reports that Iran was preparing for more U.S. aggression following the November midterm elections.

Crude broadly rose past bets on improving supplies from a recent U.S.-Russia diesel supply deal, while continued Russia-Ukraine hostilities, despite U.S. President Donald Trump’s claims of a ceasefire, also underpinned oil.

Brent oil futures for December rose 0.8% to $106.51 a barrel by 22:28 ET (02:28 GMT), while West Texas Intermediate crude futures for November rose 0.8% to $94.87 a barrel.

Yemen’s Iran-backed Houthis launched a wave of missiles at Saudi Arabia on Tuesday, targeting major cities, as well as state-owned company Saudi Aramco’s facilities.

Aramco’s headquarters in Dhahran were struck in the latest attacks, although only a limited fire was reported in the facility.

The attacks saw Saudi authorities shut Riyadh’s international airport for at least a week.

The Houthis ramped up their offensive against Saudi Arabia in early October over the kingdom’s backing of government forces in Yemen’s renewed civil war.

Their attacks on Aramco facilities and ships in the Red Sea were a key point of concern for markets, given that they stand to further disrupt oil supplies from the Middle East.

Trump last week told reporters that Washington may join Saudi Arabia in attacking the Houthis, spurring fears of further escalation in the conflict.

Shipping through the Strait of Hormuz also remained constrained after reports this week showed more ships were hit by missiles when attempting to cross the waterway.

The UK Maritime Trade Operations authority said at least two ships were struck in the Strait of Hormuz on Tuesday.

The U.S. and Iran remained at odds over reopening the waterway, with Washington also seen planning more attacks on the Islamic republic.

Reports showed Iran was preparing for renewed U.S. military aggression after the midterm elections in early-November.

Elsewhere, focus remained on oil production in the U.S. Gulf coast, after the region was battered by a hurricane that saw over 60% of production being taken offline.

Source: Investing.com

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