Houthi Missile Attack Sends Global Oil Prices Soaring

Global oil prices surged on Monday after the Iran-backed Houthi group launched missile and drone attacks on Riyadh, Saudi Arabia, on Saturday. The escalation has heightened concerns over the security of energy supplies in the Middle East.

Brent futures rose $1.81 to $104.68 a barrel at 22:02 GMT, while US West Texas Intermediate (WTI) crude increased by $0.76 to $101.06 a barrel. The attack targeted several sensitive sites in Riyadh, including Saudi Aramco facilities.

The Saudi-led coalition said it had intercepted a missile and thwarted several other attacks. However, the Houthis claimed they had successfully targeted several sites, including the Olaya district of Riyadh. Energy supply risks have increased due to the attack, with disruptions to the East-West Pipeline and concerns over reduced global supplies.

The pipeline is crucial for Saudi exports, providing an alternative route that avoids the Strait of Hormuz. Disruptions to the route raise the risk to smooth energy traffic in the region. Increased Houthi activity around the Red Sea adds risks to energy shipping routes through Bab al-Mandab.