Yemeni Houthis attack key Saudi oil facilities escalating tensions and oil prices

Tensions in the Middle East escalated further as Yemeni Houthi forces launched attacks on key Saudi Arabian energy infrastructure. Reports indicate that the Ras Tanura refinery, with a capacity of 550,000 barrels per day (BPD), was struck by missiles, as reported by Sabereen. This attack followed a massive explosion at an oil refinery in Jeddah, according to Naya.

Additionally, Saudi Arabia's East-West oil pipeline was reportedly halted after a new attack, causing significant damage. Sources cited by AFP noted that the pipeline had stopped again due to the incident. These attacks coincided with the commencement of Operation “Dawn of Yemen,” a large-scale initiative by Yemeni forces targeting Houthi capabilities, as reported by Al Arabiya.

The series of attacks has had an immediate impact on global oil markets. Brent crude prices rose by 0.7% following the Ras Tanura refinery attack, while WTI crude saw a 0.6% increase after the Jeddah explosion. Earlier, the East-West pipeline attack drove Brent crude up by 1.7% and WTI crude by 1.8%. Meanwhile, the G7 leaders' announcement of releasing up to 100 million barrels of diesel and crude stocks over four months, as confirmed by French President Macron, had a contrasting effect, causing WTI crude to drop by 1.8% and Brent crude by 1.5%.