Oil hits six-week high after Houthi attacks on Saudi sites, Brent US$97.92 and WTI US$93.03
Houthi attacks set Saudi oil facilities ablaze and wounded more than 70 people, raising fears of supply disruption beyond the Strait of Hormuz
- Oil prices rose to a six-week high, with Brent crude settling at US$97.92 and West Texas Intermediate (WTI) at US$93.03 a barrel.
- The price increase was triggered by attacks from Yemen's Houthi group, which set fire to Saudi Arabian energy installations.
- The attacks threaten to disrupt energy supplies from the world's second-largest crude producer, raising concerns about the security of oil routes beyond the already restricted Strait of Hormuz.
- China's August crude imports rose from July but fell 23.4% year-on-year, customs data shows
Oil extended its rally to a fresh six-week high on Tuesday (September 8) after Houthi attacks set Saudi energy installations on fire, threatening to draw more of the region’s oil supply network into the six-month Middle East war.
Brent crude futures settled at US$97.92 a barrel, up 92 US cents, or 0.9%. US West Texas Intermediate (WTI) finished at US$93.03, gaining US$1.55, or 1.7%.
For a second consecutive session, Brent posted its highest close since July 23. WTI recorded its strongest settlement since June 4, while both benchmarks remained technically overbought.
Yemen’s Iran-backed Houthis struck four cities in southern Saudi Arabia, wounding more than 70 people and setting oil installations ablaze.
The attacks appeared to be among the largest directed at the kingdom, a US ally.
Saudi export alternative faces wider threat
Saudi Arabia, the world’s second-largest crude producer after the United States, has been sending oil west to the Red Sea to bypass the Strait of Hormuz.
Tuesday’s attacks threatened to disrupt energy supplies beyond the blockaded strait, potentially worsening the war’s global economic effects.
Gulf oil exports have already been severely restricted by Iranian attacks on regional energy infrastructure and vessels passing through Hormuz. Those attacks followed joint US and Israeli strikes on Iran in late February. Before the war, roughly 20% of global oil supplies passed through the waterway.
Figures released by Kpler on Tuesday showed seven commodity vessels crossed Hormuz on Monday, down from eight on Sunday.
Wall Street banks are increasingly factoring in the likelihood that Middle East shipping disruptions will continue into 2027. Goldman Sachs, HSBC and other banks have raised their crude price forecasts for the remainder of 2026 and for next year.
Later on Tuesday, Houthi-controlled media reported Saudi air strikes in Yemen’s Jubah district, east of the capital Sanaa, and in the southwestern province of Taiz.
Fuel costs raise interest-rate concerns
Crude surrendered some of its earlier gains as investors weighed the economic cost of higher fuel prices. More expensive energy could feed inflation and prompt central banks around the world to raise interest rates, slowing growth and weakening energy demand.
Disruption at refineries in the Middle East, Russia and elsewhere has been the main driver of high global fuel prices.
US diesel prices reached record levels last week, while Americans paid record petrol prices over the Labor Day holiday weekend.
Senior industry executives expect global diesel supplies to remain tight through winter. They cited limited spare refining capacity, Russia’s export ban following Ukrainian attacks and the approaching peak in winter demand.
High fuel costs, comments from US Federal Reserve Governor Christopher Waller and a stronger-than-expected US jobs report have prompted some investors to revise their interest-rate expectations.
The CME FedWatch Tool put the market-implied probability of a rate increase at the Fed’s September 15–16 meeting at about 60%, compared with roughly 50% before the jobs figures.
Russia diplomacy and Chinese demand
A telephone conversation between US President Donald Trump and Russian President Vladimir Putin also helped trim oil’s early gains.
The Kremlin said Trump told Putin on Tuesday that he wanted a swift end to the war in Ukraine, which would allow US-Russia relations to be fully restored. Putin supported that position, according to the Kremlin.
An end to the fighting could enable Russia to export more energy. US energy data ranked Russia as the world’s third-largest crude producer in 2025, behind the United States and Saudi Arabia. Russia also belongs to the OPEC+ group of oil-producing countries.
China’s crude imports recovered in August from July but remained 23.4% below their year-earlier level, customs data released on Tuesday showed. China is the world’s second-largest economy after the United States.
Since March, China has restricted exports of refined oil products to protect domestic supplies, even as higher prices have reduced consumption at home.
