Oil Hovers Near $115 as Houthi Strikes and Iran Tensions Keep Brent at a Six-Month High

Oil prices held near six-month highs on Monday, October 26, 2026, even as hopes for easier US-Iran tensions briefly pulled them lower. Brent crude settled at about $115.81 a barrel and US West Texas Intermediate at about $101.57, according to CNBC’s market wrap, after Brent briefly topped $117 on Friday, its highest in roughly six months. Brent is on course for a third straight weekly gain, driven by Houthi attacks on Saudi infrastructure, supply disruption in Libya and fears that the US-Iran conflict will flare up again.

Analysts say the market is pricing a geopolitical risk premium more than an actual loss of barrels. Saudi Aramco has said production was not affected by the latest strikes, and Kpler data suggest Middle East exports, including shipments rerouted around the Strait of Hormuz, have stayed close to pre-war levels. Even so, ING analysts wrote that re-escalation looks the most likely path and that the mere possibility of it will keep a large premium in prices. Others note that any fall back toward last week’s lows is likely to attract buyers.

The costs are spreading. Distillate prices have risen, with ultra-low sulphur diesel above $4.90 a gallon in New York trading on October 22. US gasoline prices jumped 9.1% in September, according to the Bureau of Labor Statistics, accounting for more than half of the monthly rise in consumer prices. Norway’s sovereign wealth fund, the world’s largest, reportedly lost about $30 billion in the third quarter as markets swung.

For importers in Asia, including Malaysia, the effect shows up in subsidy bills and fuel-price debates rather than at the pump, because governments are absorbing much of the increase.

What to watch: the Federal Reserve’s decision on Wednesday, any White House announcement on Iran, Houthi claims against Saudi oil facilities, and weekly inventory data. A deal that reopens the Strait of Hormuz would likely drive prices sharply lower.

Sources: CNBC, Reuters, The National, UNN, DTN, Kiplinger citing BLS (October 22–26, 2026). Compiled October 27, 2026.