Oil prices rose Wednesday as traders weighed persistent diesel-market constraints against renewed attacks involving Saudi Arabia and Yemen’s Iran-backed Houthis. West Texas Intermediate added 95 cents to reach $95.
The International Energy Agency warned that diesel-market constraints could continue into 2027. Gulf crude exports had recovered strongly in September, but renewed attacks threatened to disrupt that improvement and leave the broader supply recovery vulnerable.
Saudi Arabia’s Energy Ministry said a limited fire broke out Tuesday in an administrative building at Saudi Aramco in the Eastern Province after the facility was targeted. No injuries were reported. The incident followed missile alerts affecting the Eastern Province and Riyadh, while Saudi Civil Defense said debris from two intercepted Houthi missiles injured four people and damaged 15 homes in the capital.
Saudi-led forces also carried out airstrikes on Sanaa, the Houthi-held Yemeni capital, after warning civilians to leave the Yemeni Oil Company site and nearby storage areas. Residents reported explosions near the Subaha fuel facility west of the city. The attacks marked a further escalation in fighting between the Saudi-led coalition and the Houthis, with potential implications for energy infrastructure and shipping routes in the region.
Central Command rejected Iranian claims that Tehran controls the Strait of Hormuz or could sink approaching U.S. The competing claims added to market concern over a conflict already affecting major oil-producing states and strategically important waterways.