Houthi Missile Attack Sends Oil Prices Soaring to One-Week High

Oil prices surged by 4% on Thursday to reach a one-week high after a Houthi missile attack on Saudi Arabia revived fears of supply disruptions. The attack, which was intercepted by Saudi forces, targeted the southern province of Taif and Yanbu area on the Red Sea.

The price increase was driven by concerns that the attack could disrupt oil supplies through the Strait of Hormuz, a key shipping route in the Middle East. However, trade was volatile, and prices came off session highs after reports that the US and Iran discussed reopening the strait.

Brent futures rose 3.4% to settle at $106.60 a barrel, while US West Texas Intermediate crude rose 2.7% to settle at $94.61. The price increases were also fueled by the US's decision to target companies in third countries that do business with Iran, which could further disrupt oil supplies.

The Strait of Hormuz has become a central bargaining chip in efforts to end the nearly seven-month US-Iran conflict. Iran seeks relief from the US blockade choking its economy, while Washington wants free passage for ships on the global oil supply route now blocked by Tehran.