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Oil Prices Swing: Brent Hits $102 Amid Volatile West Asia War and Yemen Conflict Escalation
- •Oil prices swung on Monday, October 5, with Brent crude for December delivery climbing above $103 before settling around $102 per barrel, as traders weighed a stalled West Asia war against fresh fighting in Yemen.
- •West Texas Intermediate bucked the trend, slipping 0.6% to $90.60 a barrel, despite major OPEC+ producers agreeing to leave output quotas unchanged.
- •Yemen's escalating conflict, with the Saudi-backed government launching a full-scale military campaign against Houthi control, injected fresh volatility into the market.
- •The Houthis' strengthened grip on the Bab el Mandeb, a crucial waterway for Saudi oil exports avoiding the Strait of Hormuz, and their attacks on Saudi oil facilities, have added pressure on the world's biggest crude exporter.
- •Prices remain high, with Brent roughly 40% above pre-conflict levels, as traders fear the unresolved conflict could reignite, compounded by falling global inventories and Iran's attempts to control the Strait of Hormuz.
Key Questions Answered
Oil prices swung on Monday, October 5, 2026, as traders weighed a stalled West Asia war against fresh fighting in Yemen. Brent crude for December delivery climbed above $103 a barrel before paring gains to trade around $102 per barrel, while West Texas Intermediate slipped 0.6% to $90.60 a barrel.
Yemen's Saudi-backed government launched a full-scale military campaign to retake areas controlled by the Houthis. Rashad Al-Alimi ordered all army branches into action on Sunday, vowing to fight until the country is liberated from the Houthi militia.
Major OPEC+ producers agreed to leave their output quotas unchanged for the following month. Meanwhile, the Group of Seven pledged to release up to 100 million barrels of emergency oil and diesel stocks, though this failed to cool prices.
