Brent crude jumped more than 3 percent on Thursday after Yemen's Houthi rebels launched missile and drone attacks on targets in Saudi Arabia, including a claimed strike on Aramco facilities in the Red Sea city of Yanbu. The benchmark climbed above $108 a barrel intraday before settling at $106.50, while West Texas Intermediate gained 4 percent to $95.82, marking the first rise in seven sessions.
The Saudi-led coalition in Yemen said it intercepted six ballistic missiles fired toward the kingdom. The Houthis, via the Yemen News Agency, said they had attacked a "sensitive target" in Riyadh and Aramco installations in Yanbu, claiming both operations "achieved their objectives successfully." Saudi authorities did not confirm damage or casualties. Aramco, which supplies roughly 10 percent of global oil demand, did not respond to inquiries outside regular business hours, according to Al Jazeera.
A Naval Blockade and Pipeline Crisis Compound the Shock
The price spike deepened an already fragile supply picture. The Houthis have imposed a naval blockade on Saudi Arabia since mid-September, striking tankers and seizing territory along Yemen's Red Sea coastline, a corridor vital for Saudi crude exports. The East-West pipeline, the kingdom's only remaining major export route after Hormuz was disrupted, was itself hit by drones in early September, forcing Aramco to cut crude deliveries to European customers for late September.
Kpler data showed only 33.7 million barrels transiting the Strait of Hormuz in the week to September 20, down from pre-crisis levels. With both the strait and the pipeline compromised, Saudi Arabia's ability to keep markets supplied is increasingly constrained. The risk of a full supply outage, even temporary, is no longer theoretical.
UN Security Council Issues Rare Joint Condemnation
The United Nations Security Council responded on Friday with a rare joint statement condemning Houthi attacks "in the strongest terms" and affirming Saudi Arabia's right to self-defense under international law. The statement also condemned attacks and threats against commercial shipping in the Red Sea and Bab al-Mandab Strait and called on member states to enforce the arms embargo on the Houthis under Resolution 2216.
The council's unified stance is notable given the divisions that have paralyzed it on other Yemen-related resolutions. The statement came as the conflict enters its seventh month and as the Houthis advance along the Red Sea coast, further tightening their grip on key shipping lanes.
What the Numbers Show
Brent closed at $106.50 a barrel on September 25, up $2.28 from the prior session. WTI settled at $92.41 after earlier touching $95.82. The moves erased early-week losses that had briefly pushed Brent below $100 on diplomatic hopes. Markets are now pricing in a sustained risk premium on crude as long as the blockade and pipeline disruptions persist.
The spike also reflected positioning ahead of any broader escalation. The Houthis' capacity to strike deep into Saudi territory, including near the capital, raises the stakes for Riyadh and its allies. The Saudi foreign minister has called for international accountability to contain the Houthi threat, a signal that Riyadh may seek more direct support beyond the coalition framework.
Sources
- [Al Jazeera: Oil prices jump after Yemen's Houthis claim attacks on Saudi facilities](aljazeera.com)
- [Al Monitor: UN Security Council condemns Houthi attacks on Saudi Arabia](al-monitor.com)
- [Arab News: UN Security Council condemns Houthi attacks, backs Riyadh's right to self-defense](arabnews.com)
- [GlobeCapital: Brent crude jumps above $106 after Houthi attack](globecapital.com)
