Oil Prices Surge on Houthi Missile Attacks
Oil prices surged about 4% to a one-week high on Thursday after Yemen's Iran-backed Houthis fired missiles at Saudi Arabia, escalating tensions and disrupting supply concerns. Brent crude rose $4.10 (4%) to $107.18/b, marking its highest level since September 15, while WTI climbed $3.66 (4%) to $95.82/b.
The Houthi missile attacks targeted southern Saudi regions and the Red Sea near Yanbu and Taif, raising concerns over Red Sea shipping routes and oil export bottlenecks. The attacks were thwarted by Saudi Arabia's air defense system, but the incident heightened regional tensions.
US Energy Secretary Chris Wright warned that a potential diesel export ban could backfire, harming refining operations and raising fuel prices. Analysts also cautioned that such a move might worsen global diesel shortages. Diesel prices have hit record highs in recent weeks, prompting ongoing US-EU talks and concerns about a potential US ban on diesel exports.