Oil Prices Surge as Houthi Attacks Target Saudi Infrastructure
Oil prices rose toward $101 per barrel following Houthi attacks on Saudi refineries and pipelines amid intensified fighting in Yemen and the Strait of Hormuz.
Global oil prices rose Tuesday and Wednesday as security risks in the Strait of Hormuz and intensified fighting in Yemen sparked supply fears. Brent crude reached $101.08 and West Texas Intermediate climbed to $89.97, driven by reports of seven vessel strikes near the Strait of Hormuz since late September and warnings from Iran against using U.S.-backed routes.
In Yemen, Saudi-backed forces launched an offensive to retake key points along the Red Sea. The Houthi Movement responded by targeting Saudi airports, the East-West Pipeline, and a major Saudi Aramco refinery in Riyadh. These geopolitical tensions coincided with American Petroleum Institute data showing a 2.09 million barrel draw in U.S. oil inventories for the week ending October 2.
To mitigate price spikes, Group of Seven nations agreed to release 100 million barrels of crude oil and diesel from emergency reserves. In the United States, President Donald Trump signed an executive order to lower diesel prices by deferring the federal diesel tax through the end of the year and temporarily allowing the highway use of tax-free dyed diesel. Meanwhile, the Energy Information Administration raised its fourth-quarter Brent crude forecast to an average of $105 per barrel.
