Houthi militants struck energy sites across southern Saudi Arabia on Tuesday, injuring dozens and halting operations at several facilities. Crude prices jumped in response, with U.S. and international benchmarks both hitting their highest levels in months, and Goldman Sachs has raised its price forecast on the risk of a prolonged Gulf supply shortfall.
U.S. crude advanced 3% to $94.36 a barrel on Tuesday, its highest price in over three months, after Saudi Arabia said Houthi attacks had struck oil facilities. Brent crude, the international benchmark, climbed 2% to almost $99 a barrel, its highest since July 23.
Attacks hit multiple Saudi regions
Saudi Arabia's Energy Ministry said several energy-sector facilities and installations in the kingdom's southern region were targeted on Tuesday morning. Major-General Turki al-Maliki, spokesman for the Saudi-led coalition in Yemen, said the Houthi strikes hit sites in Jazan, Najran, Abha and Khamis Mushait, calling them "civilian and economic facilities", and said 73 people were injured.
The Financial Times reported Monday that Saudi Aramco's Jazan refinery was struck by the Houthi attacks. That 400,000 barrel-a-day plant has been shut since an earlier attack in July, according to Bloomberg. Saudi Arabia's energy ministry separately said fires had broken out at several sites, halting some operations there too.
Prices near $100 for the first time since July
Brent crude touched $99.25 a barrel, up 2.2% on the day, its closest approach to $100 since July. The moves come amid worsening tensions between Yemen's Iran-backed Houthi rebels and Saudi Arabia, layered on top of an already-strained supply picture from the separate Iran war.
Goldman Sachs has responded by raising its oil price forecast, with commodities research head Daan Struyven saying Brent could top $120 a barrel if average Persian Gulf output in 2027 stays 4 million barrels below usual prewar levels.
Sources: The Wall Street Journal (snippet-based), MarketWatch, The Guardian
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