Houthi Attacks Drive Oil Prices to Six-Week High Amid Middle East Disruptions
Oil prices surged to a six-week high on Tuesday after Houthi attacks on Saudi energy facilities, which set oil installations ablaze and heightened concerns about Middle East supply disruptions.
The Brent crude futures rose by $0.70, or 0.7%, to $97.70 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by $1.21, or 1.3%, to $92.69. This puts Brent on track for its highest close since July 23 and WTI on track for its highest close since June 4.
Saudi Arabia, the world's second-biggest crude producer behind the U.S., has been shipping oil west to the Red Sea due to disruptions at the Strait of Hormuz. However, the attacks on Saudi sites threaten to worsen the war's global economic impact by disrupting Middle East energy supplies beyond the blockaded strait.
According to Tim Waterer, chief market analyst at KCM Trade, 'The price action reflects both genuine physical tightness, tanker flows through Hormuz remain well below normal, and a clear geopolitical risk premium.'