Houthi Attacks Send Oil Prices Soaring to Six-Week High

Oil prices surged to a six-week high on Tuesday after Houthi militants attacked Saudi energy facilities, setting oil installations ablaze and threatening a major escalation of the Middle East conflict. Brent crude futures rose by $0.70 or 0.7% to $97.70 per barrel at 10:56 a.m. EDT (1456 GMT), while U.S. West Texas Intermediate (WTI) crude increased by $1.21 or 1.3% to $92.69.

The attacks on Saudi Arabia, which included four cities in the south of the country, resulted in over 70 wounded individuals and disrupted oil exports from the Gulf region. The disruption has been exacerbated since Iran attacked energy infrastructure in late February, causing tanker flows through the Strait of Hormuz to remain below normal levels.

Tim Waterer, chief market analyst at KCM Trade, attributed the price increase to both genuine physical tightness and a clear geopolitical risk premium. Goldman Sachs and HSBC have raised their crude price forecasts for 2026 and 2027 in response to ongoing shipping disruptions.