Houthi Rebels Claim Attack on Riyadh Oil Facilities, Fueling Geopolitical Risk Premium
The Houthi rebels in Yemen have claimed to have attacked Saudi Aramco oil facilities in Riyadh, sparking fears of renewed uncertainty in the Middle East crude supply outlook.
The attack, which reportedly used multiple ballistic missiles and drones, allegedly hit its targets and caused fires near the facilities. However, the Saudi-led coalition has disputed the claim, suggesting that the Houthis are attempting to create a 'false victory' following recent battlefield setbacks.
The incident comes as Middle East oil export volumes have gradually recovered to near pre-war levels, driven by increased shipments through the Strait of Hormuz and pipeline restorations. However, traders and analysts believe that rising geopolitical risk could reinject a premium into oil markets next week.