Oil Prices Soar After Houthi Attacks on Saudi Facilities
Oil prices surged to multi-week highs on Tuesday after attacks by Iran-backed Houthi rebels on Saudi energy facilities and a threat of 'economic warfare' from Tehran. Brent crude futures rose $1.39, or 1.43%, to $98.39 a barrel at 0956 GMT, while US West Texas Intermediate crude climbed $2.25, or 2.46%, to $93.73 a barrel.
According to Tim Waterer, chief market analyst at KCM Trade, the price action reflects both 'genuine physical tightness' and a geopolitical risk premium. He noted that tanker flows through the Hormuz Strait remain well below normal, contributing to the price increase.
The attacks on Saudi energy facilities halted operations at some facilities, wounding 73 people, in what Saudi authorities called a 'dangerous escalation.' Iran's threat of economic warfare and its firing of an advanced missile at US warships underscored the risks of further escalation in the war.