Houthi strikes on Saudi energy sites extend oil's gains

A new wave of attacks against southern Saudi Arabia was launched by Yemen's Iran-backed Houthi rebels, targeting energy infrastructure, military installations, and other strategic sites, marking an escalation in regional tensions.

The Saudi Energy Ministry reported that multiple energy facilities and installations in the country's southern area were struck, resulting in fires and a temporary suspension of some operations. Emergency response teams were dispatched to extinguish the blazes and secure the impacted locations.

Saudi officials said the targeted areas included Abha, Khamis Mushait, Jazan, and Najran, while the Saudi-led coalition stated that 73 people were injured.

Responsibility for the strikes was claimed by the Houthis, who said they used drones and ballistic missiles against Saudi targets. They stated they hit Aramco facilities in Abha, Najran, and Jizan, as well as a military airbase in Khamis Mushait.

The Houthis also announced a broader military operation deep inside Saudi territory, increasing the risk of further attacks on the kingdom's energy infrastructure.

This escalation follows renewed fighting in Yemen and comes after reports that Yemeni forces backed by Saudi Arabia have launched offensives against Houthi positions. The Houthis have said their latest attacks are retaliation for Saudi military actions in Yemen.

Saudi Arabia condemned the attacks as a dangerous escalation and stated it would take necessary measures to defend its sovereignty. The Saudi-led coalition also pledged a firm response.

These developments are particularly significant for oil markets because Saudi Arabia is the world's largest oil exporter. The attacks come amid already high geopolitical tensions in the Middle East, with oil prices approaching $100 a barrel as concerns over supply disruptions grow.

WTI crude oil has breached its July high and now trades at its highest level since June. The next target is the swing high near the 97.00 handle, and a break above that could bring prices to $100.