Oil prices rise after Houthi attack claims targeted Saudi Arabia's largest crude refinery, reigniting acute fears over Middle East energy supplies.
Global benchmark Brent crude rose by 1.3 percent to $115.36 a barrel on Wednesday morning. United States West Texas Intermediate crude also gained over one percent to reach $101.12 a barrel.
The market reaction reversed sharp losses from earlier in the week. Energy traders had briefly grown optimistic about diplomatic talks, but fresh hostilities in the Gulf quickly drove crude contracts higher.
The geopolitical shock intensified after Yemen's Iran-aligned Houthi movement declared on Tuesday that it launched a ballistic missile at the Ras Tanura refinery. The complex, located in Saudi Arabia's Eastern Province, ranks as the kingdom's largest refining hub with a processing capacity of 550,000 barrels per day.
Houthi military spokesperson Yahya Saree claimed the strike caused major fires at the installation. While regional energy desks watched closely as oil prices rise after Houthi attack statements, Saudi authorities moved quickly to defend their airspace.
The Saudi-led military coalition confirmed that air defense batteries intercepted three ballistic missiles heading toward the Eastern Province. Falling debris was reported near urban centers, but officials did not confirm direct physical destruction inside the refining units.
Industry analysts point out that Ras Tanura represents a critical chokepoint for international trade. Along with the Red Sea port of Yanbu, the Gulf terminal handles the overwhelming bulk of Saudi crude exports.
Maritime security monitoring firm Vanguard noted that a localized fire occurred near the coastal terminal complex early Tuesday but was successfully contained. Independent shipping logs indicated that oil-loading berths remained operational, though maritime insurance premiums across Gulf shipping lanes immediately hardened.
Because physical damage appears limited, crude benchmarks saw measured rather than panic-driven increases. Even so, energy strategists note that sustained tensions continue to inject a persistent risk premium into global fuel costs.
The latest escalation comes at a delicate moment for the global economy. Central banks continue to watch transportation and retail energy costs closely to gauge inflation risks.
The OPEC+ oil-producing alliance is scheduled to review monthly output policies on Sunday. Market delegates widely expect core producers, led by Saudi Arabia and Russia, to maintain their existing production ceilings rather than adding fresh crude to global markets.
Global commodity desks are keeping a close watch on Gulf maritime channels and air defense operations. If further infrastructure strikes emerge, oil prices rise after Houthi attack disruptions could push wholesale fuel benchmarks toward fresh multi-year peaks.
