Middle East tensions push crude prices towards $100

Oil prices climbed towards $100 a barrel after renewed fighting in the Middle East revived fears that crude supplies and shipping routes could be disrupted.

Brent crude reached $99.46 on Tuesday, its highest level since July 24, before falling to about $97 later in the evening. U.S. West Texas Intermediate crude also rose to its highest level since June 8, reflecting growing concern among traders about the conflict’s effect on global energy supplies.

The latest rise followed attacks by Yemen’s Iran-backed Houthi group on four cities in southern Saudi Arabia: Khamis Mushait, Abha, Najran and Jazan. The Houthis said they used drones and missiles in what they described as a broad operation deep inside Saudi territory. The attacks reportedly struck energy infrastructure, including targets linked to Saudi Arabia’s state-owned oil company.

Jazan, a major Red Sea port city, is home to a large refinery and power plant. Other targeted locations contain oil distribution facilities. Satellite images cited by Reuters showed a thick cloud of black smoke over the Jazan refinery and white smoke rising from an oil distribution centre in Abha. Saudi authorities reported fires at the sites and said 73 people, including women and children, were injured.

The attacks marked a significant escalation after relative calm in August. They also renewed concerns about oil infrastructure and shipping security across the region. The Houthis control much of Yemen’s populated areas and have previously threatened Red Sea shipping, while Saudi Arabia has led an Arab coalition fighting the group in Yemen for more than a decade.

The escalation comes as the United States and Iran exchange fire and apply pressure through restrictions on energy and shipping. The Strait of Hormuz has become a central flashpoint because it has previously carried about a fifth of global oil. Washington is seeking to increase crude flows into international markets by guiding ships through the strait while using a blockade to restrict Iranian oil exports. Iran has announced plans for what it called a “maritime exclusion zone” extending from the U.S. blockade through the strait and into the Gulf.

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