FX.co ★ Brent Crude Erases Gains

Brent crude traded around $105.50 a barrel on Wednesday after surrendering earlier gains, as investors weighed improving export flows against renewed violence across the Middle East. The US reported that it had helped facilitate the shipment of more than 19 million barrels of crude through the Strait of Hormuz, offering some reassurance that supplies continued to move despite the conflict. Saudi Arabia has increased output, with September production up by roughly one-third from its previous level. At the same time, security concerns have intensified following missile and drone attacks by Iran-backed Houthi forces on several Saudi targets, including the Saudi Aramco office complex in the kingdom’s east. The latest strikes have increased pressure on Washington to support its regional ally and deepened uncertainty over the recovery in Gulf energy exports. Iranian attacks on tankers transiting the Strait of Hormuz are adding further risk to supply stability.