Houthi Strikes on Saudi Energy Sites Push Brent Crude Near $100

Key points

• Brent crude futures climbed 1% to $98.13 per barrel, hitting an intraday high of $99.46, while WTI futures advanced 1.95% to $93.26.
• Houthi militants targeted energy infrastructure in Abha, Khamis Mushait, Jazan, and Najran using drones and ballistic missiles, according to Saudi state media.
• The Saudi Foreign Ministry reported that more than 70 civilians were injured in the attacks, which caused fires and forced temporary shutdowns at several facilities.
• Goldman Sachs raised its December 2026 price forecasts for Brent and WTI by $5, citing prolonged Middle East shipping disruptions that may continue into 2027.
• The attacks follow U.S. military strikes on three Iranian oil tankers, which Tehran condemned as economic warfare, prompting warnings from Iranian officials about retaliatory actions.

Background

This escalation follows a series of Houthi attacks on Saudi energy infrastructure since July 2026, including strikes on Aramco facilities in Jizan and Yanbu. Previous incidents in September caused Brent crude to approach $97.40, marking a significant rise from earlier levels. The current conflict is part of a broader pattern of U.S.-Iran military exchanges that began in July, with oil prices already up more than 8% for the month of September.

Why it matters

The attacks highlight the vulnerability of global energy supply chains to regional conflicts. With Brent crude nearing $100, investors and policymakers are increasingly concerned about prolonged disruptions to Middle East shipping and potential inflationary pressures. The U.S. and Iran’s escalating military exchanges, including strikes on commercial vessels, suggest that the conflict may persist into 2027, affecting global energy markets and geopolitical stability.

What to watch

Analysts expect oil prices to remain volatile as the U.S. and Iran continue to trade strikes. Goldman Sachs anticipates that Middle East shipping disruptions will persist into 2027, with production gradually recovering in the second half of the year. Saudi Arabia has signaled it will take necessary measures to defend its sovereignty, while Iranian officials have warned of further retaliatory actions against U.S. assets.