Oil prices were little changed Wednesday as worries over Middle East supply disruptions keep the market on edge, with attacks on tankers near the Strait of Hormuz and Saudi energy facilities denting sentiment.
Brent crude futures lost 17 cents to $108.62 U.S. a barrel while U.S. West Texas Intermediate crude rose eight cents to $97.90 a barrel.
Iran’s Revolutionary Guards reported Tuesday that naval mines had prevented three tankers attempting to pass through the Strait of Hormuz using routes Tehran deemed unauthorized.
What is more, Yemen’s Houthi militants claimed responsibility on Monday for strikes targeting Saudi Aramco facilities in Yanbu, the Shaybah oilfield and airports in Riyadh and Abha.
The escalating tensions have also sent global oil shipping costs soaring, adding another layer of pressure to energy markets.
The global average crude freight rate has surged above $20 per barrel, compared with just $3 a year earlier, according to a Goldman Sachs report published Tuesday. While rates have eased slightly in recent days, they remain roughly seven times higher than a year ago.
Goldman estimated that war-risk premiums associated with crossing the Strait of Hormuz accounted for about $7.00 of the $20.00 year-on-year increase in average crude freight rates, while ship-to-ship transfers outside the Persian Gulf contributed another $4.00
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