Brent crude has crossed $105 a barrel after attacks claimed by Yemen’s Houthis hit Saudi targets and a tanker was struck off Qatar. Here is why it matters for fuel prices.

Crude prices move on supply risk. The Middle East supplies a large share of the world’s oil. When attacks threaten the Strait of Hormuz, the Red Sea or Saudi infrastructure, traders price in the chance that physical supply gets disrupted.

This time, several shocks hit together. Houthi missiles and drones targeted Saudi sites, a tanker was hit north of Qatar, and US Gulf production shut ahead of a hurricane. Shipping insurance and tanker costs have also risen.

For India, costlier crude means a bigger import bill. India buys most of its oil from abroad, so global spikes feed into domestic fuel prices with a lag.

Analysts say prices stay volatile while the conflict runs. A ceasefire or calmer shipping lanes would ease the pressure.