Houthi Attacks Send Oil Prices Soaring Over 3%
Oil prices surged on Monday after Houthi attacks on Saudi Arabia and strikes in the Strait of Hormuz raised concerns over supply disruptions.
The Houthis, backed by Iran, secured a position to launch unfettered attacks in the Bab el-Mandeb strait, as well as key Saudi energy targets. This came after last week's Houthi strikes on major Saudi targets, including an Aramco refinery and fuel terminal, plus several fuel plants, airports, and ships.
The development blocks off another key oil supply channel in the Middle East, especially given that a bulk of Saudi Arabia's oil shipments through Hormuz were diverted through the Bab el-Mandeb strait. Saudi Arabia said it had shut a crucial East-West pipeline following more Houthi attacks.
Oman's foreign minister, Sayyid Badr Albusaidi, announced on Sunday that a regional meeting between Iran and Gulf powers, initially scheduled for Monday, had now been postponed indefinitely.