Oil hits multi-week highs after Houthi attacks on Saudi energy facilities

According to Business Recorder, crude prices rose to multi-week highs on Tuesday after Houthi strikes on Saudi energy sites, while Tehran warned Washington of "economic warfare". Brent crude was 1.43% higher at $98.39 a barrel by 0956 GMT, adding $1.39, and U.S. WTI gained 2.46% to $93.73. Earlier, Brent touched $99.46, its strongest level since July 24, while WTI peaked at $94.73, the highest since June 8.

Some operations at Saudi energy facilities were halted after the attacks, which wounded 73 people, and Saudi authorities described the escalation as dangerous. Iran said it fired an advanced missile at U.S. warships, and on Saturday American forces hit three Iranian oil tankers, one near Kharg Island, according to U.S. Central Command. Shipping through the Strait of Hormuz also slowed early this week after Iran vowed to respond to any fresh American attacks.

Goldman Sachs raised its Brent and WTI forecasts for December 2026 by $5, to $85 and $80 respectively, and lifted its 2027 forecasts to $80 and $75 respectively. The bank based this on an assumption that Middle East shipping disruptions will continue into 2027. Industry executives said global diesel supply will stay tight, given limited spare refining capacity, Russia's export ban and peak winter demand approaching. U.S. gasoline prices reached record highs over the Labor Day weekend, and diesel hit records the week before.