Oil Prices Climb as Houthi Threats to Saudi Arabia Overshadow Supply Gains

Global oil prices advanced on Wednesday as escalating hostilities between Yemen’s Iran-backed Houthi movement and Saudi Arabia sparked renewed anxiety over crude supply routes in the Middle East. These geopolitical tensions offset concerns about recovering production volumes in the region.

Brent crude futures for December delivery rose 0.93% to settle at $101.52 a barrel. U.S. West Texas Intermediate (WTI) futures for November contracts gained 0.81%, reaching $90.16 per barrel.

Despite the price increase, physical supply conditions have improved. Saudi Energy Minister Prince Abdulaziz bin Salman reported that oil pumped through the East-West Pipeline had reached 5.8 million barrels by Tuesday morning, indicating a steady recovery in export capacity.

However, market sentiment was weighed down by recent security incidents. The Saudi aviation authority confirmed that airports in Jazan and Najran were targeted in two separate attacks. These strikes are part of an intensifying conflict between the Houthi rebels and the Saudi kingdom.

Compounding the uncertainty, Iran has escalated attacks on merchant tankers navigating the Strait of Hormuz. This vital waterway is critical for global oil exports, and traders fear that such aggression could disrupt the fragile rebound in regional trade.

Market experts noted the tension between improving logistics and ongoing danger. Naeem Aslam, chief investment officer at Zaye Capital Markets, stated that oil prices remain “caught between improving physical supply and persistent geopolitical risk.”

Samer Hasn, a senior market analyst at XS.com, warned that the Houthis’ ability to strike facilities hundreds of kilometers from the border demonstrates their sustained capacity to threaten infrastructure. “These risks could worsen if the Houthis feel the need to apply more pressure as a result of losing more territory,” Hasn said.