Oil Prices Soar to Six-Week High Amid Saudi Facility Attacks
Oil prices surged to a six-week high on Tuesday after Iran-backed Houthis attacked Saudi energy facilities, setting oil installations ablaze and threatening to worsen the global economic impact of the Middle East war.
Brent futures rose $0.92, or 0.9%, to settle at $97.92 a barrel, while US West Texas Intermediate (WTI) crude increased by $1.55, or 1.7%, to settle at $93.03.
The Houthis attacked four cities in the south of Saudi Arabia, wounding over 70 people and setting oil installations on fire.
Saudi Arabia, the world's second-biggest crude producer behind the US, has been circumventing the Strait of Hormuz by shipping oil west to the Red Sea. However, Tuesday's attacks pose a significant threat to Middle East energy supplies beyond the blockaded strait.
Goldman Sachs and HSBC raised their crude price forecasts for 2026 and 2027 due to the likelihood of continued Middle East shipping disruptions.