Houthi Strikes Threaten Saudi Energy Lifeline and Global Oil Prices
Saudi Arabia's remaining energy lifeline to the world is under threat after successful Houthi strikes on Tuesday. The attacks targeted several energy sector facilities and installations in the southern region of the Kingdom, causing fires at multiple locations and a temporary halt in some operations. According to Brig. Gen. Yahya Saree, the Houthi spokesman, the strikes were 'precise' and 'direct,' causing major damage to those facilities.
The attacks on Saudi Arabia's energy infrastructure put further pressure on oil exports from the Middle East, already drastically affected by the Iranian closure of the Strait of Hormuz and the resumption of the U.S. blockade on Iranian ports. The Houthi strikes on Tuesday followed a spike in attacks on shipping in the Strait of Hormuz, with the U.S. Central Command (CENTCOM) destroying three Islamic Revolutionary Guard Corps (IRGC) oil tankers after the Iranians fired ballistic missiles at U.S. warships.
The price of oil is rising further as a result of these events, with Brent crude trading at nearly $98 per barrel on Tuesday, a $10 per barrel gain from Aug. 26. Analysts said the price reflected 'the market's recognition that there is no end in sight for the conflict.'