Oil prices rose sharply on Wednesday following an attack on Saudi Arabia’s state-owned oil company and renewed threats against shipping in the Strait of Hormuz, raising concerns about the stability of global energy supplies. Brent crude futures climbed 91 cents, or 0.9%, to $106.60 per barrel by 1110 GMT, while U.S. West Texas Intermediate crude increased $1.65, or 1.8%, reaching $95.79 a barrel, marking the highest level in over two weeks.

The attacks come amid heightened tensions in the Gulf region, where conflict between Saudi Arabia and the Iran-aligned Houthi movement in Yemen has intensified. The Houthis launched a strike on a Saudi Aramco administrative building in Dhahran, causing a limited fire, according to Saudi Arabia’s energy ministry.

Analysts attribute the rise in oil prices to both the recent assault and ongoing threats to vessels navigating the Strait of Hormuz, a critical maritime chokepoint through which a significant portion of the world’s oil passes. “Attacks on ships crossing the Strait of Hormuz and military strikes between Saudi Arabia and the Houthis are supporting prices as market participants remain concerned about lower oil exports from the region,” UBS analyst Giovanni Staunovo said.

Iranian officials told Reuters that Tehran has shifted its tactics, initiating a new offensive against maritime targets roughly 10 days ago. They indicated the goal may be to sustain higher oil prices and possibly influence the political landscape ahead of the upcoming U.S. midterm elections. These remarks suggest a strategic recalibration by Iran amid ongoing geopolitical pressures.

The increased volatility in the region underscores lingering uncertainties about oil supply security, as multiple stakeholders engage in a complicated proxy conflict that continues to affect global energy markets.