Houthis Strike Saudi Oil Facilities, Sending Prices Higher

Oil prices held near a six-week high on Tuesday after Iran-backed Houthis in Yemen attacked Saudi energy facilities, setting oil installations ablaze and threatening a major expansion of the six-month-old Middle East war.

The Houthi attacks targeted four cities in the south of Saudi Arabia, wounding more than 70 people and causing significant damage to oil infrastructure.

Oil markets pared earlier gains as investors grew concerned that high fuel costs would stoke inflation and force central banks around the world to raise interest rates, reducing economic growth and demand for energy.

The price of Brent futures rose by 19 cents to $97.19 a barrel at 1:52 p.m. EDT (1752 GMT), while U.S. West Texas Intermediate (WTI) crude increased by 88 cents to $92.36, putting both benchmarks on track for their highest closes since July 23.

Global fuel prices were already high due to disruptions at refineries in the Middle East, Russia, and elsewhere, with diesel prices reaching record highs last week and Americans facing record-high gasoline prices over the Labor Day holiday weekend.