Oil Prices Soar as Houthi Attack on Saudi Arabia Raises Supply Fears

Oil prices surged about 3% to a one-week high on Thursday after a Houthi missile attack on Saudi Arabia raised concerns about supply disruptions. The attack, which was intercepted by Saudi defense systems, targeted the southern province of Taif and the Yanbu area on the Red Sea.

The price jump was led by Brent futures, which rose $3.52 or 3.4% to settle at $106.60 a barrel, while US West Texas Intermediate crude climbed $2.45 or 2.7% to settle at $94.61.

Despite the volatility in oil prices, analysts warn that a potential US diesel export ban could worsen global supplies and further disrupt economies. The move is being considered by the Trump administration as an alternative to a short-term ban on diesel exports.