Saudi Energy Operations Halted Amid Ongoing Houthi Attacks

Saudi Arabia's energy operations have been halted at several facilities in the south after fresh attacks by the Yemen-based Houthi group sparked fires, further fueling concerns over oil supplies as Brent crude approaches $100/bbl.

The Houthi group claimed to have targeted Saudi Aramco facilities in Abha, Najran, and Jazan with ballistic missiles and drones, according to a statement from the group's military spokesperson. The Saudi energy ministry confirmed fires at several locations but did not identify the specific facilities.

Facilities in Abha and Najran are part of Saudi Arabia's nationwide oil and gas distribution network, primarily serving domestic consumption. The Jazan refinery, which has been targeted repeatedly since the Houthis warned in July that they would blockade Saudi oil flows, is a growing concern for oil markets, with a capacity of 400,000-bpd.

Recent attacks targeting four cities near the Yemeni border have injured 73 people. Goldman Sachs analysts modestly raised their oil-price forecasts on expectations that shipping disruptions will persist into 2027, citing risks to their outlook as 'significantly tilted to the upside'. The bank noted that markets are increasingly pricing a prolonged Mideast conflict.

The Houthi attacks come amid continued tensions between Iran and the U.S., with Iran recently reorganizing its military ranks around an 'offensive doctrine' and warning of a more aggressive posture toward U.S. forces in the region.