Houthi Attack Sends Oil Prices Soaring Amid Saudi-Iran Tensions

The recent attack by the Houthis on Saudi-backed forces in Yemen has led to a surge in oil prices. WTI oil is attempting to break above the resistance level of $77.50-$78.00, with a successful move potentially pushing it towards the 50 MA at $80.07.

According to reports, the Houthis claimed that Saudi Arabia was preparing to attack them, but a ceasefire agreement reached in 2022 is no longer valid. The Houthis have also imposed a maritime blockade on Saudi Arabia's ports, with Iran stating that it had reached an understanding with Oman regarding the management of the Strait of Hormuz.

The potential agreement between Iran and Oman would be valid for 2-4 months, but the US was not part of the deal. Saudi Arabia prefers diplomacy but prepares for military action in case negotiations fail.