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As Saudi Aramco's headquarters came under attack, Middle East conflicts escalated further, intensifying market uncertainty over the prospects for restoring energy supplies in the Persian Gulf, and oil prices edged higher.

On Tuesday, Brent crude rose to around $106 per barrel, while WTI crude approached $95. Iran-backed Houthi forces launched missile and drone strikes into Saudi territory, targeting multiple cities in eastern Saudi Arabia as well as Saudi Aramco's office complex.

Recommended Reading: Saudi Aramco Headquarters Hit by Houthi Missiles

As the US-Iran war continues to disrupt energy markets, Brent crude has risen more than 70% so far this year. Risk sentiment escalated further last week after Houthi forces attacked Riyadh's main airport; meanwhile, Saudi-backed forces launched an operation in Yemen to retake rebel-controlled areas. Attacks on vessels in the Strait of Hormuz have also prompted more supertankers to avoid the Persian Gulf.

Morgan Stanley analysts including Martijn Rats said in a report: "Crude oil exports are still continuing, but the related uncertainty remains elevated." The bank raised its spot Brent crude price forecast by $5 per barrel for this quarter and the next. "At the same time, attacks targeting Saudi infrastructure have increased."