Houthi Attack Sends Oil Prices Soaring Amid Escalating Middle East Tensions

Crude oil prices rose on Hyperliquid as tensions escalated in the Middle East following an attack by Ansar Allah, also known as the Houthis, on Riyadh Airport. The West Texas Intermediate (WTI) price surged to $96.2, with its open interest hitting a record $173 million.

The Brent crude oil benchmark rose to $99.8, slightly higher than its closing price at the end of the week. Analysts warn that the attack will lead to a significant escalation in fighting between Saudi Arabia and Ansar Allah, affecting oil flows from the region.

The East-West pipeline has been closed since the US-Iran war began earlier this year, and some analysts believe it may take months to repair due to parts shortages and weather complications. Even when fixed, the pipeline will likely become a target for Iran and other militias in the area.

Meanwhile, the US Strategic Petroleum Reserve (SPR) is at its lowest level in over four decades, with only 284 million barrels remaining. This, combined with rising demand from countries like China, which saw a 6.2% increase in crude imports in August, has led analysts to predict further price increases.

Michael Wirth, CEO of Chevron (NYSE:CVX), warned that depleting reserves and falling supplies may drive prices higher, while Goldman Sachs (NYSE:GS) analysts predicted oil could jump to $120 if supply shocks continue. JPMorgan also stated it does not see an endgame for oil markets.