Oil Prices Near $100 After Fresh Attacks on Saudi Energy Sites
Key Takeaways
- •Saudi Arabia temporarily halted some operations at energy facilities in its southern region after they were attacked on Tuesday, causing fires and injuring several residents.
- •The strikes follow repeated Houthi attacks on Saudi Aramco's 400,000-barrel-per-day Jazan refinery on the Red Sea coast, the latest occurring on Monday.
- •The attacks come amid the U.S.-Iran war, with Saudi Arabia increasingly routing oil westward through the Bab el-Mandeb Strait and Red Sea to avoid the Strait of Hormuz.
- •Oil prices rose toward $100 per barrel, with Brent at $98.70 and WTI up 2.89% at $94.12 in Asian trade on Tuesday.
- •As the world's largest crude exporter, Saudi Arabia faces heightened scrutiny because past attacks, such as the 2019 Abqaiq and Khurais strikes, disrupted significant production.

Saudi Arabia has temporarily suspended some operations at energy facilities in its southern region bordering Yemen after attacks on energy sites on Tuesday morning local time, the official Saudi Press Agency reported.
"Several energy sector facilities and installations in the southern region of the Kingdom were targeted this morning," the agency said, quoting an official source at the Ministry of Energy.
The attacks triggered fires at several locations, prompting a temporary halt in some operations, Saudi Arabia said, adding that "specialized field teams have begun containing the fires, securing the sites, and assessing the damage." The strikes also injured several residents, according to the Saudi news agency, which did not specify which energy sites were targeted or which operations were disrupted.
"Authorities are continuing to address the repercussions of the attacks and are taking the necessary measures to ensure the safety of facilities and personnel, as well as the continuity of operations in accordance with approved operational plans," Saudi Arabia said.
The attacks come just over six months into the U.S.-Iran war. In July, Iran's allies in Yemen, the Houthis, threatened Saudi shipping in the Red Sea and the Bab el-Mandeb Strait, adding pressure on energy operations and flows across the Middle East. The Houthis have also struck Saudi Aramco's Jazan oil refinery on the Red Sea coast in southwest Saudi Arabia multiple times since July.
The latest attack on the 400,000-barrel-per-day refinery occurred on Monday, threatening the major Red Sea refining hub at a time when Saudi Arabia is moving more oil westward to avoid the Strait of Hormuz. The western route around the Arabian Peninsula passes through the Bab el-Mandeb Strait and the Red Sea toward the Suez Canal, meaning the security of both chokepoints has become central to how Saudi crude reaches European and other western buyers.
Saudi Arabia is the world's largest crude oil exporter, so repeated strikes on its energy infrastructure carry significance for global supply well beyond the kingdom's borders. The kingdom's output has been a key source of market stability during the conflict, and previous attacks on Saudi facilities — including the September 2019 strikes on Abqaiq and Khurais that temporarily knocked out a large share of production — have shown how quickly such incidents can tighten global supply.
Tuesday's attack on Saudi energy sites came as oil prices continue to climb toward the $100 per barrel mark, with hopes for peace in the Middle East shrinking amid renewed mutual threats between the United States and Iran. Further statements from Riyadh on damage assessments and the pace of restored operations, along with any claims of responsibility for the attacks, are likely to shape how markets gauge supply risk in the days ahead.
In Asian trade on Tuesday, Brent crude was nearing $99 per barrel, at $98.70, while WTI crude had topped $94 a barrel, rising 2.89% to $94.12.
By Tsvetana Paraskova for Oilprice.com