Oman crude prices surged past $110 per barrel on Tuesday amid rising concerns over escalating attacks targeting energy infrastructure and shipping routes in the Gulf region. The benchmark Oman crude contract for December delivery climbed $3.35 to settle at $110.18 per barrel, up from $106.83 on Monday. For October delivery, the monthly average price reached $87.84 per barrel, marking an increase of $11.48 compared to September's average.

International crude benchmarks also reflected the heightened geopolitical tensions. Brent crude futures hit a peak of $111.75 per barrel—its highest level since May—before easing slightly to $111.20 by 11:20 GMT, gaining $1.65 or 1.5%. The November contract for U.S. West Texas Intermediate (WTI) crude, set to expire on Tuesday, surged to $110 per barrel, the highest for a near-term contract since April. It last traded at $109.08, up $5.42 or 5.2%.

The price increases followed claims by Yemen’s Iran-aligned Ansar Allah group that they had conducted multiple attacks on Saudi energy and transportation targets on Monday. These included an assault on an Aramco facility in Yanbu, the Shaybah oilfield, Riyadh’s King Khalid International Airport, and Abha airport.

Analysts at ING highlighted that the jump in oil prices incorporated a significant geopolitical risk premium amid uncertainties surrounding regional security. They noted this premium could ease if oil shipments continue uninterrupted, although current developments showed no clear signs of stabilization.

Further compounding concerns over Gulf shipping safety, the maritime intelligence firm Kpler reported that in the past two weeks, at least 18 vessels had reportedly come under attack. These incidents have sustained fears over risks posed to crucial shipping lanes in the region.

Meanwhile, the conflict in Yemen also intensified, with Ansar Allah carrying out an attack on a training camp for government security forces in Shabwa province on Monday. The assault resulted in 58 fatalities and wounded more than 200 individuals, underscoring the broader security challenges in the area.

The combination of repeated attacks on energy infrastructure and maritime assets in the Gulf has contributed to ongoing volatility in global oil markets, amplifying concerns about the stability of crucial supply routes in an already fragile geopolitical environment.