Oil prices jumped above $99 a barrel Tuesday, the highest in three months, after Houthi missile and drone strikes hit Saudi energy infrastructure and the U.S. struck Iranian oil tankers. OPEC+ held its October output quotas steady, while Iran threatened a new maritime exclusion zone in the Gulf and Aramco delayed cargoes to European buyers.
Oil prices climbed above $99 a barrel on Tuesday, the highest level in three months, after Houthi missile and drone strikes hit Saudi energy infrastructure and the U.S. struck Iranian oil tankers. Flaring Israeli-Lebanese tensions mean it would take only one combative statement from President Trump to push oil back into triple-digit territory, according to the report.
WTI crude traded at $92.31 a barrel, up 0.91%. Brent crude rose to $97.46, up 0.47%.
Houthi Strikes Force Saudi Shutdowns
Houthi missile and drone attacks forced the shutdown of operations at several Saudi energy facilities, including new strikes on the 400,000 b/d Jazan refinery that wounded 73 people. The report called it an unprecedented escalation of attacks on Saudi energy infrastructure.
As a result, Saudi Aramco has reportedly delayed some September oil cargoes to European buyers despite nominations rising to 1.3 million b/d, suggesting the strikes are disrupting exports even as August loadings ran at just 2.2 million b/d.
OPEC+ Holds Steady as Iran Caps Output
OPEC+ left its October 2026 production quotas unchanged after completing the rollback of its 1.65 million b/d voluntary cut in September. The group is now shifting focus to a review of 2027 output baselines, as the Iran conflict has capped its ability to ramp up crude oil production.
Iran, meanwhile, said it plans to establish a new maritime exclusion zone in the Gulf, expanding it toward the U.S. Navy's blockade perimeter and potentially claiming the UAE port of Fujairah and Oman's Sohar. Tehran also warned Washington of its new ballistic missiles.
China's Crude Imports Rebound
China's crude imports rose 6.2% month-on-month to 8.93 million b/d in August, marking a second consecutive monthly jump as Beijing eased its fuel export ban. Product exports jumped 29% from July, even as domestic fuel demand stayed weak.
Source: Oilprice.com
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