U.S. West Texas Intermediate crude rose by $2.01 per barrel, or 2.7%, to close at $75.57 per barrel. Brent crude futures settled higher as well at $81.07 a barrel (2.5% higher), after rising as much as 3.4% during the trading session. Oil climbed to its highest level this month, as further attacks on ships in the Red Sea prompted fears of shipping disruptions. Yemen’s Iran-backed Houthi militia claimed responsibility for a missile attack on Tuesday on a container ship in the Red Sea, and for an attempt to attack Israel with drones. “There’s plenty of geopolitical tensions today in terms of the Middle East … and it has given some anxiety here to the security of the transit of oil and other goods,” said John Kilduff, partner with Again Capital LLC.
Hopes of interest rate cuts that could boost economic growth and fuel demand also helped the price of oil today.