Houthi Attacks on Saudi Infrastructure Send Brent Crude Oil Prices Soaring
Cubierto por 3 fuentesPublicado
- Hellenics Shipping newsEuropean shares slip as French fiscal turmoil drives weekly loss
- Baird MaritimeOil prices rise to highest since late April on Middle East fears
- Hellenics Shipping newsEuropean gas caps strong weekly gain on Middle East supply escalation
- Financial PortsConflicts. Houthi Strikes Shut Riyadh Airport as Red Sea Shipping Thins
- Hellenics Shipping newsOil falls from 6-mth highs as Iran mediation efforts ease supply worries
- Hellenics Shipping newsIEA chief says energy markets won’t return to pre-Iran war levels
Yemen's Houthis carried out coordinated missile and drone attacks against critical energy and transport infrastructure in Saudi Arabia, striking Aramco facilities in Yanbu and Shaybah. The episode drove Brent crude to its highest levels in months, amid growing fears over the security of energy supply from the Gulf region.
Attacks on Airports and Evacuations
The attacks also affected civilian transport: one of the strikes fatally hit a civilian airport in Dammam, according to Hellenic Shipping News, while Financial Ports reported that Riyadh's international airport had to temporarily close after being directly targeted. Baird Maritime, citing Reuters, reported that Saudi Aramco ordered the evacuation of its headquarters in Dhahran, near Bahrain, as clashes intensified between the world's largest crude oil exporter and the Houthis.
Diverging Crude Oil Price Gains
Figures on the Brent crude increase varied depending on the source and time of day. Hellenic Shipping News noted that the barrel reached a five-month high of $114.00 on Friday. Baird Maritime, however, reported a gain of $4.01 (3.54%) to $117.18, with an intraday high of $117.38, the highest level since late April, and projected a weekly gain of 6.7%, the third consecutive weekly rise. Days later, the same agency reported that Brent had closed Friday at $116.72, its highest close since April 29, before falling 2% on Monday to $114.39 amid diplomatic easing with Iran.
Impact on European Gas
The escalation also had repercussions on the European natural gas market. According to Hellenic Shipping News, the benchmark price rose 3.8% on Friday to €93.40 per megawatt-hour, with a weekly gain of nearly 7% and levels not seen since late 2022, while in Britain the equivalent price rose 3.5% to 229.00 pence per therm. The source attributed the jump to restrictions on LNG carrier transit through the Strait of Hormuz, which forced vessels to divert around Africa and sharply reduced spot cargo arrivals at European regasification terminals, at a time when European Union gas reserves stood at around 75% of capacity, below the historical average of 86% for this time of year.
European Stock Markets and Tensions in France
That same Friday, European stock markets closed the week with losses, though Hellenic Shipping News attributed the decline mainly to fiscal and social unrest in France and market concerns over the massive debt financing required for artificial intelligence infrastructure. The STOXX 600 index fell 0.1% on Friday and posted a weekly decline of 1%, while France's CAC 40 dropped 0.5% on the day and nearly 2% for the week, amid civil unrest, municipal curfews, and French sovereign bond yields at 24-year highs.
Risks to Shipping and the IEA's Outlook
Financial Ports warned that the Houthi offensive also affected maritime security in the Red Sea, where the European naval operations Aspides and Atalanta remain the only coalitions protecting merchant vessels in the Bab el-Mandeb Strait, after repelling a pirate hijacking attempt against the MV Glamor on October 16. Meanwhile, International Energy Agency Executive Director Fatih Birol said at the Singapore International Energy Week conference that energy markets will not return to pre-war levels with Iran, noting that Friday's Houthi attacks pushed futures to $117 per barrel, the highest level in nearly six months, with prices running about 59% above pre-conflict levels.
