Houthi Attacks Send Oil Prices Soaring to Six-Week High

Oil prices surged to a six-week high on September 8 after Houthi attacks set Saudi energy installations ablaze, threatening to disrupt global supplies. Brent crude futures settled at US$97.92 a barrel, up 0.9%, while WTI finished at US$93.03, gaining 1.7%. The attacks were among the largest directed at Saudi Arabia, a key US ally.

The Houthi strikes wounded over 70 people and set oil installations on fire in four cities in southern Saudi Arabia. This development is particularly concerning as it threatens to disrupt energy supplies beyond the blockaded Strait of Hormuz, which has already been severely restricted by Iranian attacks on regional energy infrastructure and vessels.

Goldman Sachs, HSBC, and other banks have raised their crude price forecasts for 2026 and 2027, factoring in continued Middle East shipping disruptions. The war's global economic effects may worsen if supplies are disrupted further.