Oil gains about 3% on Sept 24 as Houthis target Saudi Arabia
Brent settled at US$106.60 a barrel and US crude at US$94.61, with both trimming gains as US-Iran talks raised hopes of reopening Hormuz
- Oil prices rose by approximately 3% on September 24, with Brent crude settling at $106.60 a barrel (a 3.4% gain) and U.S. WTI crude finishing at $94.61 (a 2.7% gain).
- The price surge was triggered by renewed fears of supply disruptions after Saudi Arabia intercepted six Houthi ballistic missiles targeting areas that included the Yanbu Red Sea export hub.
- Initial gains of up to 5% were tempered by reports of talks between the U.S. and Iran aimed at potentially reopening the Strait of Hormuz, which eased some market concerns.
Oil prices settled about 3% higher on Thursday, September 24, 2026, as a Houthi missile attack on Saudi Arabia revived fears of supply disruptions. Reports of US-Iran talks on reopening the Strait of Hormuz subsequently tempered the gains. Brent crude futures closed at US$106.60 a barrel, gaining US$3.52, or 3.4%, to reach their highest settlement since September 15. US West Texas Intermediate (WTI) crude finished at US$94.61 a barrel, up US$2.45, or 2.7%. The increase ended a six-session losing streak during which WTI had fallen about 13%.
Brent and WTI had each climbed about 5% at their session highs before retreating in volatile trading.
Saudi missile interceptions renew supply concerns
Saudi Arabia intercepted six ballistic missiles launched by Yemen’s Iran-backed Houthis towards Taif and the Yanbu area on the Red Sea, according to the Saudi-led coalition in Yemen.
Saudi Arabia was also increasing the volume of crude pumped through the East-West Pipeline to Yanbu, its Red Sea export hub. Tanker loadings had yet to restart, however, according to industry sources, satellite imagery and shipping data.
Satellite imagery dated September 22 showed repairs and bypass construction at two pumping stations on the pipeline near Al Mesbaah, in Al Madinah province, following damage from a drone attack.
Iranian airlines were barred from neighbouring countries, including the United Arab Emirates and Oman, following new US sanctions. The restrictions marked the first major impact of Washington’s move to target companies in third countries that do business with Iran.
Washington expanded the financial restrictions as the US-Israeli war against Iran remained largely stalled on the battlefield after months of fighting. The measures targeting foreign companies that trade with Iranian firms are known as “secondary sanctions”.
Iran threatened on Wednesday, September 23, to make neighbouring countries’ airports “unusable” if they complied with the US restrictions on Iranian flights.
US-Iran talks explore phased reopening of Hormuz
US and Iranian negotiators in New York were exploring a phased route towards ending the war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, according to sources close to the talks.
Access to the Strait of Hormuz has become central to efforts to end the nearly seven-month conflict. Iran wants relief from the US blockade constraining its economy, while Washington wants ships to move freely through the global oil supply route blocked by Tehran.
Two Iranian sources, two regional officials and two Western diplomatic sources told Reuters that neither side wanted to relinquish its bargaining advantage.
US weighs diesel export restrictions as supplies tighten
Record diesel prices in recent weeks have kept senior European Union (EU) and US officials in contact over supply pressures. The EU believes a reported US plan to ban diesel exports could damage both sides.
US Energy Secretary Chris Wright contacted executives at several major American refiners in recent days to assess their willingness to restrict diesel exports voluntarily, according to three people familiar with the discussions. The Trump administration was looking for an alternative to a short-term export ban.
Politico reported that Washington was preparing a 90-day diesel export ban following a price surge ahead of November’s midterm elections. Wright disputed the report.
Global diesel supplies have tightened following Russia’s export ban, imposed amid disruptions caused by Ukrainian attacks on Russian refineries and energy infrastructure. Iranian attacks on ships and energy facilities in the Middle East have added to the pressure.
Analysts and market observers warned that a US diesel export ban would offer little relief from high energy prices and could further restrict global supplies, causing more economic disruption.
