Oil hits multi-week highs after Houthi attacks on Saudi energy facilities
Sept 8 : Oil prices hit multi-week highs on Tuesday after Iran-backed Houthis attacked Saudi energy facilities and Tehran threatened the United States with "economic warfare".
Brent crude futures were up $1.39, or 1.43 per cent, at $98.39 a barrel at 0956 GMT. U.S. West Texas Intermediate crude was at $93.73 a barrel, up $2.25, or 2.46 per cent.
Brent earlier rose to $99.46, its highest since July 24, while WTI reached $94.73, its highest since June 8.
"The price action reflects both genuine physical tightness, tanker flows through Hormuz remain well below normal, and a clear geopolitical risk premium. Right now the risk premium is doing a lot of the heavy lifting," said Tim Waterer, chief market analyst at KCM Trade.
CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less "As for the rest of the year, oil looks set to remain elevated while the Strait stays contested and diplomatic progress remains fragile." Operations at some energy facilities in Saudi Arabia, the world's top oil exporter, were halted on Tuesday following attacks by Yemen's Iran-aligned Houthis that wounded 73 people, in what Saudi authorities called a dangerous escalation. Meanwhile, Iran threatened the United States with "economic warfare" and said it had fired an advanced missile at U.S. warships, underscoring the risks of further escalation in the war only days after both sides traded blows again. On Saturday, U.S. forces struck three Iranian oil tankers, including one near Kharg Island, Iran's main oil export hub, according to U.S. Central Command. The attacks followed strikes by Iran's Revolutionary Guards on U.S. warships operating in the region. Shipping traffic through the Strait of Hormuz also slowed at the start of this week, after Iran threatened on Monday to retaliate for any new U.S. attacks. The Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February. Meanwhile, Goldman Sachs raised its Brent and WTI price forecasts by $5 to $85 and $80, respectively, for December 2026 and to $80 and $75, respectively, for 2027, reflecting its new assumption that Middle East shipping disruptions will continue into 2027. In the product market, global diesel supply will remain tight due to a lack of spare refining capacity, Russia's ban on exports and the approach of peak winter demand, senior industry executives said on Tuesday. Americans faced record-high gasoline prices over the Labor Day holiday weekend as continued attacks on refining infrastructure and new threats constrained global supply, keeping upward pressure on fuel prices, while U.S. diesel prices also reached record highs last week. "Refined-product markets could remain tighter than the crude market, particularly if refinery capacity and logistics remain constrained for an extended period," said Paolo Broccardo, CEO at BankPro.
"As for the rest of the year, oil looks set to remain elevated while the Strait stays contested and diplomatic progress remains fragile."
Operations at some energy facilities in Saudi Arabia, the world's top oil exporter, were halted on Tuesday following attacks by Yemen's Iran-aligned Houthis that wounded 73 people, in what Saudi authorities called a dangerous escalation.
Meanwhile, Iran threatened the United States with "economic warfare" and said it had fired an advanced missile at U.S. warships, underscoring the risks of further escalation in the war only days after both sides traded blows again.
On Saturday, U.S. forces struck three Iranian oil tankers, including one near Kharg Island, Iran's main oil export hub, according to U.S. Central Command. The attacks followed strikes by Iran's Revolutionary Guards on U.S. warships operating in the region.
Shipping traffic through the Strait of Hormuz also slowed at the start of this week, after Iran threatened on Monday to retaliate for any new U.S. attacks.
The Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict began in late February.
Meanwhile, Goldman Sachs raised its Brent and WTI price forecasts by $5 to $85 and $80, respectively, for December 2026 and to $80 and $75, respectively, for 2027, reflecting its new assumption that Middle East shipping disruptions will continue into 2027.
In the product market, global diesel supply will remain tight due to a lack of spare refining capacity, Russia's ban on exports and the approach of peak winter demand, senior industry executives said on Tuesday.
Americans faced record-high gasoline prices over the Labor Day holiday weekend as continued attacks on refining infrastructure and new threats constrained global supply, keeping upward pressure on fuel prices, while U.S. diesel prices also reached record highs last week.
"Refined-product markets could remain tighter than the crude market, particularly if refinery capacity and logistics remain constrained for an extended period," said Paolo Broccardo, CEO at BankPro.
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