Global Oil Prices Surge Over 3% Amid Reports of Houthi Missile Attack on Saudi Arabia

Global oil prices surged on the 24th, local time, as concerns over disruptions to crude oil supplies in the Middle East were reignited following a missile attack on Saudi Arabia by Yemen's Houthi rebels.

On this day, November Brent crude futures on London's ICE Futures Exchange settled up 3.52 dollars, or 3.41 percent, at 106.60 dollars a barrel.

West Texas Intermediate (WTI) crude for November delivery on the New York Mercantile Exchange also jumped 2.45 dollars, or 2.66 percent, finishing at 94.61 dollars a barrel.

Oil prices spiked by around 5 percent at one point during the session as worries over supply disruptions intensified following news that the Iran-backed Houthi rebels in Yemen had fired ballistic missiles toward Saudi Arabia.

The Saudi-led coalition in Yemen stated that it intercepted six ballistic missiles fired by the Houthi rebels, thwarting attacks targeting the southern city of Taif and Yanbu, a major crude oil export hub on the Red Sea coast.

Market anxiety was particularly heightened because Yanbu serves as the export terminal for the East-West pipeline connecting Saudi Arabia's eastern oil fields to the Red Sea.

However, oil prices pared some of their gains from their intraday highs as reports emerged that the United States and Iran were discussing a phased end to the conflict, which includes the reopening of the Strait of Hormuz.

Citing sources familiar with the negotiations, Reuters reported that U.S. and Iranian negotiating teams in New York were exploring a phased peace plan involving a swap of Iran reopening the Strait of Hormuz for the lifting of U.S. economic blockades against Iran.

While Iran is demanding the lifting of U.S. economic blockades that are pressing its economy, the United States is demanding free navigation for vessels in the Strait of Hormuz, a key oil shipping lane blocked by Iran.

Nevertheless, it was reported that significant hurdles remain before an actual agreement can be reached, as neither side is willing to give up its negotiating leverage before the other does.
※ Please note: This article was translated by AI and may contain errors.