Houthi Rebels Claim Missile Strike on Saudi Oil Tanker, Sending Oil Prices Soaring

Oil prices rebounded on Wednesday after Yemen's Iran-aligned Houthi rebels claimed to have launched a missile attack on a Saudi oil tanker in the Red Sea. The incident drove up Brent crude futures by $1.51, or 1.9%, to $80.87 a barrel.

The attack reportedly occurred off the coast of Yanbu, a key port for Saudi crude oil exports. The Houthi rebels' claim sparked concerns about escalating tensions in the Middle East and potential disruptions to global oil supplies.

Investors had previously hoped that mediation efforts might lead to a de-escalation of hostilities and restore shipping traffic through the Strait of Hormuz, which accounts for around 20% of the world's oil and liquefied natural gas exports. However, the Houthi rebels' actions suggest that this may not be the case.

According to UBS analyst Giovanni Staunovo, 'the reports of the attack dented investor hopes of a de-escalation in the Middle East conflict.'