Brent and WTI crude rose Monday after Yemen's Houthis launched missile and drone strikes on Riyadh, the first time the group has hit the Saudi capital in the latest escalation. Saudi air defenses intercepted a missile, and the Associated Press reported no casualties, but a Houthi claim of a separate strike on an Aramco facility raises questions about Saudi energy infrastructure.
Brent and WTI climb after the strike
Brent crude climbed 81 cents, or 0.78%, to $104.68 a barrel by 2202 GMT Monday, while US West Texas Intermediate crude rose 76 cents, or 0.76%, to $101.06 a barrel. The move came after Yemen's Iran-backed Houthis launched missile and drone strikes at Riyadh on Saturday, escalating tension in the Middle East while the US and Iran remained in stalemate.
Houthis strike the Saudi capital
Saudi civil defense sent overnight phone alerts on Saturday warning of possible aerial attacks in Riyadh and in Al-Kharj, a city east of the capital. Saudi air defenses intercepted a missile launched toward Riyadh at dawn, and Saudi-led coalition forces later said the rebels had tried to hit the capital with a ballistic missile.
Residents reported at least one explosion, and footage showed black smoke near King Khalid International Airport, where flights were severely disrupted. The Associated Press reported no casualties or damage.
Aramco claim raises the stakes
The Houthis claimed responsibility for missile and drone attacks on what they called "sensitive" sites in Riyadh, and said they had also attacked an Aramco facility in the Red Sea city of Yanbu. It is unclear what they targeted in the capital, and the Yanbu claim was not confirmed in the reports investingLive reviewed.
The attack follows drone strikes linked to the Iran war that halted a Saudi pipeline bypassing the Strait of Hormuz, and Iran still maintains the strait is closed. US Central Command said Saturday that shipments through Hormuz had reached a six-month high, and Saudi forces intercepted the missile aimed at Riyadh, which limits the immediate supply impact.
Washington stays out of the fight
Washington has signaled it does not intend to join offensive strikes against the Houthis, who control the most populous parts of Yemen and much of the north. The rebels have been attacking Saudi Arabia since declaring a naval blockade against Riyadh in July, and Saturday's attack was the first to target the capital since the latest escalation opened another front in the wider Iran war. Traders will watch whether further strikes hit Saudi energy assets or whether Monday's quiet holds.
Sources: Investinglive RSS Breaking News Feed, Commodities & Futures News
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