Houthi Attacks on Saudi Oil Facilities Spark Global Price Surge

Escalating tensions in the Middle East have driven up oil prices as fighting between Iran and the US intensifies. The Houthi rebels, backed by Iran, launched a significant escalation of their six-month-old conflict against Saudi Arabia on Tuesday, injuring over 70 people and setting oil facilities ablaze.

The attacks targeted four cities in southern Saudi Arabia, including Abha and Najran, with drones and missiles hitting a Saudi airbase and state oil company assets. NASA satellite images showed thick clouds of black smoke over the Jazan refinery and white smoke rising from an oil distribution centre in Abha.

Iranian media reported explosions on Kharg Island, Iran's major oil hub, and in the Gulf of Oman port of Jask, suggesting US strikes against Iran may have resumed after a two-day pause. A Fox News reporter cited unidentified senior US officials saying the strikes were carried out by the US military.

The fighting has driven global oil prices back towards $100 per barrel, with benchmark Brent crude and US West Texas Intermediate rising on track for their highest closes since July 23.