Market Reaction
On Monday Asian trading, crude oil prices retreated from six‑month highs after renewed Houthi attacks on Saudi Arabia. Brent crude futures for December delivery fell 1.1% to $115.40 a barrel by 20:54 ET (00:54 GMT), while U.S. West Texas Intermediate (WTI) futures dropped 1.4% to $101.88 a barrel.
Recent Price Gains
The decline followed a sharp rally on Friday, when both benchmarks climbed nearly $3 after Yemen’s Iran‑aligned Houthi movement struck Saudi oil infrastructure. Brent settled at $116.72 a barrel on Friday – its highest close since 29 April – representing a weekly gain of about 6%. WTI settled at $103.27 a barrel, up 2.3% for the week.
Attack Developments
The Houthis claimed responsibility for strikes on a Saudi airport and on oil facilities on Saturday. Saudi authorities reported intercepting additional missiles and drones on Sunday and announced a partial resumption of operations at the main airport despite damage sustained in earlier attacks. The escalation has heightened concerns that further strikes could jeopardise oil production, export terminals and regional shipping lanes, adding a geopolitical risk premium to crude prices.
Geopolitical Commentary
U.S. President Donald Trump told Fox News on Sunday that the United States was "getting to be decision time" on whether to strike a deal with Tehran or "finish it off," signalling the possibility of renewed hostilities. Iranian Foreign Minister Abbas Araghchi responded that, if rationality prevailed, the United States would not launch another attack.
Red Sea Security
The security environment around the Red Sea has deteriorated as Houthi forces advance toward the Bab el‑Mandeb Strait, a strategic chokepoint linking the Red Sea with the Gulf of Aden, further amplifying supply‑risk concerns.
Additional Supply Constraints
Separately, Libya’s National Oil Corporation reported that a valve on the pipeline connecting the Hamada and Tahara oilfields to the Zawiya port had been shut, reducing output from those fields and adding to global supply worries.
Outlook
The combination of Middle‑East attacks, geopolitical statements from Washington and Tehran, and the Libya pipeline issue continues to keep oil markets on edge, with the risk of further price volatility tied to supply‑disruption scenarios.