Oil prices surged on fears of the Middle East conflict expanding, after Yemen’s Houthis attacked Riyadh for a second day. The missile strikes, which hit the capital’s airport and left at least three dead, come as Iran upped the pace of its attacks on vessels crossing the Strait of Hormuz.
Oil exports from the Gulf last month briefly topped prewar levels, but there remains a major shortfall of refined products: Diesel prices in Europe rose 8% on Wednesday. Even the release of stockpiles announced this week by the International Energy Agency was initially overstated: JP Morgan analysts said governments were, for now, more constrained by their willingness to use those stores than their overall size.