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Brent Crude Set for Weekly Gain Amid Houthi Attacks
Confirmed
In Short: Brent crude is on track for a weekly gain as attacks by Yemen's Houthi rebels on Saudi Arabia's oil infrastructure continue to rattle markets.
Brent crude is set for a weekly gain, trading at $105.65 per barrel, up from around $102 per barrel on Monday, according to Crude Oil Prices Today.
The price increase is driven by continued concern over the security of oil supply from the Middle East, following attacks by Yemen's Houthi rebels on Saudi Arabia.
The Houthis claimed to have fired a barrage of missiles and drones at Saudi targets, including the Yanbu port on the Red Sea, which has become Saudi Arabia's main oil export terminal.
In response to the attacks, Saudi Arabia announced the closure of its major East-West crude pipeline as a precautionary measure.
The attacks have also affected regional cooperation, with Bahrain declining to attend a meeting citing the pipeline attack, and reports indicating Saudi Arabia also held reservations.
Reuters reported that the Houthis had reached the strategic island of Perim in the Bab el-Mandeb Strait, potentially tightening their grip on one of the world's vital shipping routes.
Yemeni government forces indicated they would try to retake areas captured by the Houthi militants in their recent offensive along the Red Sea coastline.
Military spokesman Colonel Majed al-Nazili called on civilians to avoid using the route between the city of Taiz and Mocha and to stay clear of Houthi equipment.
Iran reportedly directed the Houthis to escalate attacks on Saudi Arabia and promised more funding, weapons, and senior officers to assist them.
Saudi Crown Prince Mohammed bin Salman called U.S. President Donald Trump twice on Thursday, urging him to launch strikes against the Houthis, but Trump rejected the request.
The U.S. is stepping up support for Saudi Arabia while seeking to avoid direct military involvement in the conflict.
If the Houthis gain full control of the Bab el-Mandeb Strait, it could give Iran a critical advantage in the war with the U.S., reducing supplies through a second major transit corridor and sending oil prices surging.
What this adds
The attacks have not only affected oil prices but also regional stability and cooperation.
The impact on global trade and energy supply remains a significant concern.
What's confirmed
- Brent crude is set for a weekly gain, trading at $105.65 per barrel, up from around $102 per barrel on Monday, according to Crude Oil Prices Today.
- The price increase is driven by continued concern over the security of oil supply from the Middle East, following attacks by Yemen's Houthi rebels on Saudi Arabia.
- The Houthis claimed to have fired a barrage of missiles and drones at Saudi targets, including the Yanbu port on the Red Sea, which has become Saudi Arabia's main oil export terminal.
- In response to the attacks, Saudi Arabia announced the closure of its major East-West crude pipeline as a precautionary measure.
- The attacks have also affected regional cooperation, with Bahrain declining to attend a meeting citing the pipeline attack, and reports indicating Saudi Arabia also held reservations.
- Reuters reported that the Houthis had reached the strategic island of Perim in the Bab el-Mandeb Strait, potentially tightening their grip on one of the world's vital shipping routes.
- Yemeni government forces indicated they would try to retake areas captured by the Houthi militants in their recent offensive along the Red Sea coastline.
- Military spokesman Colonel Majed al-Nazili called on civilians to avoid using the route between the city of Taiz and Mocha and to stay clear of Houthi equipment.
- Iran reportedly directed the Houthis to escalate attacks on Saudi Arabia and promised more funding, weapons, and senior officers to assist them.
- Saudi Crown Prince Mohammed bin Salman called U.S. President Donald Trump twice on Thursday, urging him to launch strikes against the Houthis, but Trump rejected the request.
- The U.S. is stepping up support for Saudi Arabia while seeking to avoid direct military involvement in the conflict.
- If the Houthis gain full control of the Bab el-Mandeb Strait, it could give Iran a critical advantage in the war with the U.S., reducing supplies through a second major transit corridor and sending oil prices surging.
What's still developing
- Brent Set for Weekly Gain as Houthi Attacks Rattle Saudi Oil Supply What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Crude oil prices dipped from Thursday's close earlier today but Brent crude was on track for a weekly gain on continued concern about the security of supply from the Middle East.
- The UAE said freedom of navigation through the strait could not be used as a bargaining tool and any lasting settlement would need firm guarantees against further Iranian attacks on Gulf states.
- While the UAE will surely benefit from this, India, too, is likely to gain from the move.
- The war and subsequent blockade of the Hormuz has thrown global trade and energy supply into a tizzy.
- Two days after the Bank of Canada (BoC) held at 2.25% with a rate statement that called the labour market improved, demand subdued, and excess supply continuing, the August Labour Force Survey (LFS) has confirmed the last two claims and taken a quarter of the first one back.
- Canada lost nearly 42K jobs in August against forecasts for a 15K gain, and the unemployment rate stayed at 6.4% anyway.
- Four industries fell, led by business and building support services at 20K, and manufacturing was the only significant gain at 22K, most of it in Ontario, in a survey week that predates the August 22 tariffs.
- After several sessions of falls, the price of North Sea Brent crude rose 3.86 per cent to US$103.08 per barrel (RM421.49) and West Texas Intermediate (WTI) crude gained 1.81 per cent to reach US$92.16 (RM376.84) per barrel.
- Global benchmark Brent crude rose toward $108 a barrel after gaining nearly 9% last week, while West Texas Intermediate neared $103.
- With Tehran and Washington battling for control over the Strait of Hormuz, the East-West line had served as a primary alternative route to maintain supply flows.
- Earlier, two sources from the Saudi-backed, internationally recognised Yemeni government said its forces had withdrawn from Perim and that the Houthis had also taken the mainland Red Sea coastal town of Dhubab, which faces the island.
- Reuters reported on Thursday that the dramatic Houthi advance down Yemen's Red Sea coast this week came with direct guidance from Iran's Revolutionary Guards seeking to open a new front in Iran's war with the U.S., according to Yemeni government, Iranian and regional sources.