Brent Surpasses $117 Following Houthi Strike on Shaybah Field

Brent crude surpassed $117 a barrel on Friday, rising 3.4% during the session to bring its weekly gain to 6.5%, according to data published by Investing.com. West Texas Intermediate (WTI) crude traded at $103.02 a barrel, in a parallel increase reflecting broad upward pressure on oil prices.

This movement came after a Houthi strike targeted the Shaybah oil field in Saudi Arabia, and following statements by Iranian officials ruling out talks with Washington. Traders view these two factors as increasing uncertainty around supply at a sensitive time, driving prices higher.

The impact is not limited to crude prices, as kerosene is one of the largest cost items for Lufthansa and TUI, according to the same source. Data indicates that Lufthansa is only partially hedged for 2027, meaning it has secured only about half of its fuel needs at pre-agreed prices, making it more vulnerable to market volatility.

This surge comes at a time when markets are monitoring reactions to attacks targeting energy facilities in the region, alongside the trajectory of talks between Tehran and Washington. Traders say continued tension could keep prices elevated, while any de-escalation might lead to a decline in the risk premium currently added by the market.

What do these terms mean?

Brent crude: A benchmark crude oil extracted from the North Sea, primarily used to price a large portion of global oil.

West Texas Intermediate (WTI) crude: A benchmark U.S. crude oil traded on the New York Mercantile Exchange, used as an indicator for U.S. oil prices.

Hedging: A financial agreement or instrument allowing a company to lock in the price of a commodity or fuel in advance, protecting it against future price fluctuations.