Oil Prices Slip Amid Houthi Attacks and US-Iran Standoff

Oil prices dropped on Monday as investors assessed Saudi Arabia's export recovery amid ongoing attacks by Yemeni Houthis and a stalemate between the US and Iran. Brent crude futures fell $1.81, or 0.78%, to $103.06 a barrel at 0031 GMT after Friday's settlement. The Houthi attacks on Saturday targeted 'sensitive' sites in Riyadh and an Aramco facility in Yanbu, a key oil export hub. Despite this, Saudi Aramco increased exports through the Strait of Hormuz this month and next after halting some shipments via Yanbu.

The state energy firm's move enabled exports to recover to just over 4 million barrels per day (bpd) so far in September, up from a low of 2.4 million bpd in August. JPMorgan analysts noted that Middle East oil flows remain surprisingly strong despite the disruption, with total oil flows averaging 17.1 million bpd in the past 10 days.