Oil Prices Rise as Houthi Attacks Threaten Middle East Supply

Oil prices climbed on Monday as escalating Middle East tensions, renewed Houthi attacks on Saudi Arabia, and tanker incidents near the Strait of Hormuz heightened concerns over global crude supply disruptions.

Brent crude futures gained 76 cents, or 0.73%, to $105.48 per barrel by 2304 GMT. Meanwhile, US West Texas Intermediate (WTI) crude rose 59 cents, or 0.64%, to $92.44 per barrel, reflecting growing uncertainty across international energy markets.

The latest rally followed intensified attacks by Yemen’s Iran-backed Houthis, who claimed responsibility for Saturday’s strike on Riyadh’s international airport. The attack killed 13 people and injured more than 300, while Saudi authorities reported additional casualties following another assault on Sunday.

US President Donald Trump said Washington was considering participating in Saudi military operations against the Houthis. The developments represent another escalation of the regional conflict that began when the United States and Israel launched military operations against Iran in February.

However, Trump also announced Sunday that Russia and Ukraine had reached an energy ceasefire agreement, following Friday’s announcement of a deal involving Russian diesel supplies.

Meanwhile, maritime security concerns intensified after two tankers were attacked over the weekend near the strategically important Strait of Hormuz.

According to the United Kingdom Maritime Trade Operations, one vessel was struck by a drone near Oman’s Sohar anchorage, while another sustained damage from an unidentified projectile while passing through the strait.

The incidents have raised fears that renewed shipping disruptions could undermine September’s recovery in Middle Eastern crude exports.

Against this backdrop, Goldman Sachs increased its December Brent crude price forecast to $90 per barrel from $85, citing persistent geopolitical risks.

Analysts led by Daan Struyven estimated that geopolitical tensions currently contribute a risk premium exceeding $20 per barrel.

The bank expects WTI crude to average $81 in December 2026 and $73 in 2027, noting that elevated US-Europe shipping costs have widened the discount between WTI and Brent.

Separately, major energy producers Shell, Chevron, and BP were working to restore offshore production and redeploy personnel in the Gulf of Mexico after Hurricane Isaias made landfall Saturday.

With geopolitical instability and weather-related disruptions affecting major producing regions, oil markets remain vulnerable to further supply shocks and price volatility.