Saudi Oil Facilities Attacked as US and Iran Discuss Strait of Hormuz Reopening

Crude oil prices surged on March 24 as Yemen's Houthi militant group launched attacks on Saudi Arabia, reigniting concerns over Middle East supply disruptions.

The Houthis targeted facilities belonging to state oil company Saudi Aramco in the Red Sea coastal city of Yanbu and Riyadh, the capital. The Saudi-led coalition intercepted six ballistic missiles fired by the Houthis, thwarting attacks on the southern city of Taif and the Red Sea coastal area of Yanbu.

The attack highlights that Saudi Arabia's oil infrastructure remains exposed to geopolitical risk, with the Houthis repeatedly targeting Saudi oil facilities and airports in the past. Market attention now centers on whether the attack on Yanbu will lead to direct supply disruptions, potentially impacting export routes through the Red Sea.

Despite concerns over supply risks, reports that the United States and Iran are discussing the reopening of the Strait of Hormuz eased price gains, pushing them back from their highs. The strait is a critical chokepoint for global crude oil trade, with roughly 20% of seaborne crude passing through it.