Oil prices rose on Wednesday due to renewed clashes between Saudi Arabia and the Houthis of Yemen, further raising concerns about disruptions in oil supply in the Middle East. This price increase is particularly influenced by the new Houthi attacks on Saudi oil facilities and maritime tensions in the Strait of Hormuz.
Houthi Attacks and Their Impact on the Oil Market
The Houthis of Yemen launched a wave of missiles towards Saudi Arabia on Tuesday, with the main targets being major cities and facilities of the state-owned company Aramco. Aramco's headquarters in Dhahran was also hit in these attacks, although reports indicated limited fire at the facilities. As a result of these attacks, Saudi officials decided to close Riyadh International Airport for at least a week.
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These attacks come at a time when the Houthis have intensified their aggression against Saudi Arabia in early October, due to Saudi support for government forces in the Yemeni civil war. Attacks on Aramco facilities and ships in the Red Sea have become one of the major concerns for the market, especially as these attacks could further disrupt oil supply from the Middle East.
Maritime Tensions in the Strait of Hormuz and Their Impact on Prices
In addition to the Houthi attacks, tensions in the Strait of Hormuz, the main route for oil transportation in the world, have also added to concerns. Reports this week indicated that several ships attempting to pass through this strait were targeted by missile attacks. British officials in the Maritime Trade Office announced that at least two ships were targeted in the Strait of Hormuz on Tuesday.
The Middle East remains at the center of tensions, with the United States and Iran reaching a stalemate over the reopening of this waterway. Reports suggest that Iran is preparing for increased U.S. military actions following the November midterm elections. These developments have led analysts and investors to closely monitor the situation.
In the global market, Brent crude oil prices for December delivery rose by 0.8% to $106.51 per barrel. Additionally, West Texas Intermediate crude oil prices for November delivery also increased by 0.8% to $94.87 per barrel. This price increase has occurred due to concerns over further disruptions in oil supply stemming from ongoing tensions in the Middle East and the continuing conflict between Russia and Ukraine.
Read more: Missile Attack on Aramco Headquarters in Dhahran · Ammonia Loading in the Strait of Hormuz for the First Time Since July
