Finance · updated 2h ago · 2 min read
Houthis Attack Saudi Energy Facilities, Pushing Oil Near $100 as Dow Jones Falls
Houthis attacked Saudi energy facilities, causing fires and escalating Middle East tensions. Brent crude near $100, around $98-$99 per barrel.
Reuters.
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eciks.org
“Brent crude climbed to $98 per barrel, according to multiple market sources, driven by fears that Iran will follow through on threats to strike energy infrastructure”Read the original ↗
Reuters
“Oil prices rose to their highest in six weeks on Tuesday after the Yemen-aligned Houthi group, backed by Iran, launched attacks on Saudi energy facilities”
Translated from the original.
Read the original ↗One outlet attributes the jump to potential Iranian threats, another to actual Houthi strikes.
Oil jumps toward $100
Oil prices rose toward $100 a barrel on Tuesday as the Dow Jones fell about 1% and Brent crude climbed to $98 per barrel, extending a week-long rally in crude that has rattled equity markets.
“Brent crude futures gained 92 cents, or 0.9%, to settle at $97.92 per barrel”
Reuters said Brent crude futures gained 92 cents, or 0.9%, to settle at $97.92 per barrel, while West Texas Intermediate finished at $93.03 per barrel, up $1.55, or 1.7%.R
The price surge followed Yemen-aligned Houthi attacks on Saudi energy facilities that caused fires at oil installations and injured more than 70 people, according to Reuters and the New York Post.R
Reuters also tied the market move to fears of broader escalation after the attacks on four cities in southern Saudi Arabia, and said oil exports from the Gulf region have been hard hit since Iran attacked energy infrastructure and ships passing through the Strait of Hormuz after joint U.S.-Israel strikes on Iran in late February.R
Fed decision and inflation
Investors linked the oil spike to the Federal Reserve’s next move, with the New York Post saying fears that higher inflation data could sway the Fed to raise interest rates next week.
Reuters reported that the CME FedWatch tool showed investors pricing in about a 60% probability of a rate increase at the Federal Reserve’s policy meeting scheduled for September 15-16, up from about 50% before the jobs data.R
The New York Post said the US 10-year Treasury yield ticked up to 4.805% Tuesday, a 52-week high, as the bond market reacted to uncertainty over whether the Fed might hike interest rates for the first time in three years.
In parallel, the New York Post reported that National average gasoline prices remained at $4.15 a gallon, the same as the previous day, which it described as a record for Labor Day.
Strait of Hormuz risk
Multiple reports framed the next market risk around shipping through the Strait of Hormuz, with Reuters saying about 20% of global oil supplies pass through the strait before the February U.S.-Israel strikes on Iran.R
“About 20% of global oil supplies pass through the strait”
Reuters added that CME Group data indicated the number of commodity carrier ships that passed through the Strait of Hormuz reached seven ships yesterday, down from eight the day before, as attacks threatened to disrupt energy supplies away from the strait.R
The New York Post said Treasury Secretary Scott Bessent has said oil could sink as low as $40 to $50 a barrel if the Strait of Hormuz is fully reopened, while also noting Goldman Sachs warned benchmarks could reach $120 a barrel if the conflict prolongs shipping disruptions.
Separately, eciks.org said a sustained oil price above $100 per barrel would reduce global growth by 0.4% while adding to inflation pressures, and warned strategists that a prolonged period of $90-plus oil could force the Federal Reserve to hold interest rates steady longer than previously expected.E