Houthi Attacks Spark Oil Price Surge Amid Escalating Middle East Tensions

Oil prices have surged following reports of Houthi attacks on Saudi Arabia's energy infrastructure. The latest incident saw 11 civilians killed in the southern province of Najran, with Reuters citing a senior Saudi official as saying that the Houthis and Iran-affiliated groups were planning to launch coordinated attacks on civilian targets.

The Houthis have also targeted Saudi tankers in the Red Sea, striking two vessels over the past week. This has lent additional support to oil prices, which have rebounded above $80 per barrel for Brent crude and are trading at $83.80 per barrel.

ING commodity analysts have expressed concern that hostilities between the US and Iran could escalate further, citing 'clear signs of progress' in recent days but also growing distrust between the two nations.

The news has come as a blow to hopes for renewed oil flows via the Strait of Hormuz, with US Treasury Secretary Scott Bessent earlier this week saying that a deal was within reach and oil flows could resume as early as Wednesday.