Houthi Attack Sends Oil Prices Soaring Towards $100 Mark

Oil prices are surging again after Iran-backed Houthi rebels launched a large-scale attack against Saudi Arabia, hitting key oil facilities and prompting Riyadh to shift its export strategy.

The attack on four cities and oil facilities south of Riyahd targeted the Khamis Mushait airbase and assets belonging to state-owned oil company Aramco. Saudi authorities confirmed the attack, saying over 70 people had been wounded, including women and children.

The Houthis have also declared a maritime embargo on Saudi oil, seeking to prevent its ships from transiting through the Red Sea. As a result, Riyadh is dramatically increasing oil exports through Egypt and the Mediterranean, with crude loadings at Sidi Kerir more than doubling in August to 2.3 million barrels per day.

The majority of those barrels are Saudi crude, signaling a significant shift in Riyadh's export strategy. Saudi crude flows are increasingly moving north through Egypt's SUMED pipeline as tankers seek to avoid the Bab el-Mandeb Strait.