Houthi Attacks Send Oil Markets Soaring Above $99 Per Barrel

The recent Houthi attacks on Saudi energy assets have added to the uncertainty in the Middle East's already fragile oil market. On September 8, the Houthis launched missile and drone attacks on several sites, including Abha, Khamis Mushait, Jazan, and Najran. The Saudi authorities confirmed fires at energy sites and halted operations at some facilities while damage was assessed.

Jazan is particularly significant due to its Aramco refinery, which has a processing capacity of 400,000 barrels per day. The attacks come at a sensitive time for global oil markets, with the US and Iran locked in a wider confrontation and shipping through the Strait of Hormuz under pressure.

Oil markets responded quickly, with Brent moving above $99 per barrel and approaching the psychologically important $100 level. The immediate concern is that further attacks on energy infrastructure or prolonged disruption to Gulf shipping could tighten physical supply and keep a larger geopolitical risk premium embedded in crude prices.