Brent crude oil prices crossed $100 per barrel on Tuesday, reaching this level for the first time in three months. The rise came after Iran-backed Houthi fighters launched dozens of drones and ballistic missiles at four southern Saudi Arabian cities—Abha, Jazan, Najran and Khamis Mushait. Fires were reported at Saudi Aramco facilities, while 73 people were wounded, including women and children. Jazan is home to a major refinery that can process around 400,000 barrels of oil per day. The attacks have raised fresh concerns about oil supplies, especially as shipping through the Strait of Hormuz has dropped sharply. Before fighting resumed on August 30, around 8–9 million barrels of oil were transported through the waterway each day, but flows have now fallen below 2 million barrels per day.
The supply disruption has also reduced Gulf oil exports to around 11 million barrels per day, compared with about 18 million barrels before the conflict. Dubai and Oman crude prices have risen to around $104–$105 per barrel, while analysts are warning of tight supplies in diesel and other fuels. European gas prices have also reached a three-year high, showing that the impact is spreading beyond crude oil. Goldman Sachs has increased its Brent forecast by $5, predicting $85 per barrel for December and $80 for 2027, but warned that prices could rise above $120 per barrel if Gulf oil production remains significantly below normal levels. Higher energy prices could add further pressure on inflation, with US consumer prices already rising 3.4% over the year to July and gasoline prices increasing sharply.
