Houthi attack in Saudi Arabia: Will oil prices surge? Brent Crude rises to $99

RIYADH: Brent crude oil prices reached nearly $99 a barrel after tensions between the United States and its allies and Iran escalated once again. Iranian state media had reported explosions in the Kharg Island area. This triggered a sharp rise in oil prices. The US had carried out an attack on Iranian oil tankers the other day.

Houthi attacks on Saudi Arabia’s energy infrastructure also contributed to the sudden surge in oil prices. The attacks left 73 civilians injured. Brent crude touched $99 at around 4 pm on Tuesday. West Texas Intermediate (WTI) crude oil prices rose more than 2.7 percent to above $94 a barrel. Wholesale gas prices also increased by around two percent.

Saudi Arabia condemned the Houthi attacks on commercial vessels in the Red Sea, located to the west of the country. Saudi Arabia is the world’s largest oil-exporting country. The US attacks on Iranian oil tankers, including the sinking of one of them, came after Iran launched ballistic missiles at US Navy vessels.

The powerful Houthi attacks on Saudi Arabia came amid continuing tensions between Iran and the United States. Houthi ballistic missiles struck the southern Saudi cities of Khamis Mushait, Abha, Najran and Jizan. Attacks were also reported on Aramco oil facilities and the King Khalid Air Base in Khamis Mushait. A major fire broke out at Aramco’s Jizan refinery as well. The Jizan facility is a huge refinery with the capacity to process 400,000 barrels of oil per day. In the wake of the attacks, operations at oil facilities in the region were temporarily suspended.

This is the largest Houthi attack on Saudi Arabia so far this year. The Houthi provocation, which threatens to disrupt the Red Sea energy corridor amid the crisis in the Strait of Hormuz, has sent shockwaves through global markets. The Saudi-led Arab coalition forces have announced that they will respond forcefully to the attacks.