Oil Prices Spike as Houthi Forces Strike Saudi Refinery

Oil prices surged on Wednesday after reports emerged of Houthi forces striking Saudi Aramco's Jazan refinery near the Yemen border. The West Texas Intermediate (WTI) crude for October delivery jumped 1.2% to settle at $92.68 a barrel, its highest price since July 23.

The attack on Saudi infrastructure coincided with escalating military actions across key shipping routes. Iranian officials announced plans for an exclusion zone stretching toward the Strait of Hormuz, a crucial maritime path that handles 20% of global oil supplies.

Rising crude prices put pressure on broader stock index futures, with S&P 500 futures edging lower and Treasury futures dipping as higher energy costs raised expectations for sticky inflation. Deutsche Bank strategist Jim Reid noted that the conflict remains focused on commercial shipping near the Gulf, keeping market volatility elevated.