Riyadh Under Attack: Oil Prices Surge as Houthi Conflict Escalates

Oil prices opened higher on Globex in Sunday evening trade, following reports of a Houthi missile attack on Riyadh. The Saudi civil defense sent overnight alerts warning of possible aerial attacks in Riyadh and Al-Kharj.

The Houthis claimed responsibility for the attack, saying they targeted 'sensitive' sites in Riyadh and an Aramco facility in Yanbu. However, the claim against Yanbu was not confirmed.

The incident raises concerns about the safety of Saudi energy infrastructure and export routes. The Houthi conflict with Saudi Arabia has been escalating since July, with the Houthis declaring a naval blockade against Riyadh.

Washington's signal that it will not join offensive strikes against the rebels is seen as a factor in the higher oil prices. While US Central Command reported that shipments through Hormuz had reached a six-month high, the incident highlights the ongoing risks to global oil supplies.