Brent crude hits more than five-month high on concern over Middle East escalation

Brent crude futures are up $1.14, or 1%, at $114.31 a barrel

Oil ​prices rose on Friday, with Brent crude touching a more than five-month high, after Houthi ‌attacks in Saudi Arabia stoked concern over further disruption to energy supplies from the Middle East.

Brent crude futures gained $1.14, or 1%, to $114.31 a barrel by 1006 GMT, having earlier reached $114.72 for the highest level since May 4. US West Texas ​Intermediate crude gained $1.65, or 1.7%, to $101.12.

The Brent benchmark is on track for a third consecutive weekly ​gain of about 4%, while WTI is poised to finish 0.3% down on the ⁠week.

Saudi Aramco on Thursday ordered the evacuation of its headquarters in Dhahran on the Gulf near Bahrain, Reuters ​reported, as fighting intensified between the world's largest crude exporter and Yemen-based Houthis.

"The market remains concerned about a ​potential escalation, which, in a worst-case scenario, could trigger renewed supply disruptions," said UBS analyst Giovanni Staunovo, adding that volatile oil flows and elevated freight rates have left the market undersupplied.

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Clashes between the Houthis and a Saudi-led coalition that backs Yemen's ​internationally recognised government have raged since the Iran-aligned Houthis pushed towards Bab el-Mandeb, a shipping chokepoint at ​the mouth of the Red Sea.

"The key factors to monitor now are the extent of actual disruption and the time ‌needed to ⁠restore operations, as these will ultimately determine how much of a supply risk premium the market is willing to pay," said XS.com analyst Linh Tran.

"If attacks persist and delay deliveries, elevated prices will have a firmer foundation."

An oil spill from a tanker was detected off the coast of Umm Al Quwain, prompting containment operations ​and environmental assessments, the United ​Arab Emirates Ministry of ⁠Climate Change and Environment said on Friday. The ministry did not say what caused the spill, and authorities have not identified the tanker involved.

In Libya, an oil ​pipeline valve from the Hamada and Tahara oilfields to Zawiya port has been ​shut, leading ⁠to a reduction in production at both fields, the head of the National Oil Corporation told Reuters on Thursday.

Meanwhile, a Malta-flagged tanker with a cargo of 40,000 metric tons of Russian diesel is heading towards New York, LSEG ⁠data showed ​on Friday.

Russia had agreed to lift a self-imposed ban on diesel ​exports and supply the fuel to global markets, including the US, in an effort to lower fuel prices after an agreement between ​US President Donald Trump and Russian President Vladimir Putin.