Houthis Launch Missile Attacks on Saudi Oil Facilities Amid Brent’s Surge Past $100

Missiles struck Saudi Aramco’s refinery complexes in Jizan and Yanbu, marking the first direct assault on Saudi oil infrastructure since 2022. This rare escalation rattled energy markets and drove Brent crude over the $100 per barrel threshold before it settled back near $90.

Pressure Building in the Red Sea

The attacks on July 25 did not come out of the blue. Earlier that week, the Houthis imposed a naval blockade on Saudi shipping lanes and targeted two oil tankers, the Encelia and Layla, in the Red Sea. This waterway is a critical artery for global trade, with about 10% of seaborne shipping passing through the Bab el-Mandeb Strait.

Since late 2023, the Houthis have made navigating this region costly and unpredictable. Their drone and missile strikes forced major shipping companies to reroute around Africa’s Cape of Good Hope, extending transit times by several weeks and increasing expenses for international supply chains.

No casualties or detailed damage reports from the missile strikes have emerged yet, but the dual targeting of both Yanbu, a major refining and petrochemical hub on the Red Sea coast, and Jizan closer to the Yemeni border signals an effort to disrupt diverse parts of Saudi Arabia’s oil processing network rather than symbolic targets alone.

The spike of Brent crude to $100 represented a roughly 40% jump during July, before the price eased back to between $89 and $90.

Digital assets also reflected the turmoil. Bitcoin and XRP fell in the wake of the attacks and heightened regional uncertainty. The Houthis have a track record of supporting their operations through cryptocurrency, although no definitive link to tokens connected to these latest strikes has been confirmed. Nevertheless, regulators like the U.S. Treasury have previously spotlighted crypto fundraising related to the group.

Earlier coverage of Houthi strikes on Saudi facilities reported on rising tensions that have reverberated through energy markets before.

Disclaimer: This material is for informational purposes and does not constitute financial advice.