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EMEA Oil Update: Crude Rises After Houthis Red Sea Attack, Hormuz Framework Talks

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Crude futures rose in after-hours trading on Wednesday after Yemen's Houthis said they attacked a Saudi oil tanker in the Red Sea, stoking supply concerns as markets weighed developments surrounding regional shipping routes.

Brent crude futures rose 0.6% to $79.78 per barrel, while Murban crude futures advanced by 1.4% to $77.91/bbl.

Gelber & Associates said that negotiations remain uncertain, but the prospect of restoring tanker traffic and eventually bringing shut-in regional production back online has kept sellers in control after yesterday's sharp decline.

Yemen's Houthi rebels attacked a Saudi oil tanker in the northern Red Sea off the coast of Yanbu on Wednesday, a day after the Gulf state diverted ships away from the Bab el-Mandeb chokepoint to the south of the waterway.

On Tuesday, six Saudi-flagged very large crude carriers rerouted around southern Africa instead of transiting the Bab el-Mandeb Strait as persistent security threats continue to disrupt global energy shipping despite efforts to strengthen maritime protection in the Middle East.

Houthi spokesperson Yahya Saree said that the latest attack brings the total number of targeted Saudi oil tankers to eight since the start of the group's maritime blockade on July 22.

Saree further claimed that 29 additional Saudi tankers have been prevented from proceeding and forced to turn back in the Red and Arabian Seas.

Curbing the gains, Iran and Oman are closing in on an agreement on a proposed route for shipping through the Strait of Hormuz on Wednesday, a potential step toward a reopening of the critical waterway for energy supplies.

ING strategists said that if a deal holds and we see oil flows from the Persian Gulf normalize, market attention will quickly turn to the supply and demand balance in the fourth quarter and 2027.

Iran's Foreign Ministry spokesman Esmaeil Baqaei said talks between Iran and Oman had been underway for the past two months to establish a safe passage mechanism for commercial vessels transiting the strategic waterway.

Baqaei said the two countries are also in the final stage of reviewing and drafting a joint statement covering the main points of agreement.

On Tuesday, President Trump said an agreement to reopen and ensure maritime security on the Hormuz is imminent, as he hailed "very good discussions" with Iran.

Trump reportedly said that the Strait "is going to be open very soon," but reiterated that the US military would respond if talks faltered.

US Central Command also said the "southern route of the Strait of Hormuz remains free and open" in a post on X, highlighting that it had assisted more than 1,000 vessels in transiting the waterway despite "unwarranted" Iranian aggression.

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