World Events
Oil Climbs as Houthis Claim Missile Strike on Saudi Arabia's Largest Refinery
Image: SatyaPrem via Pixabay
Brent rises 1.4% to above $115 a barrel after the Yemeni group says it hit Ras Tanura; Saudi authorities have not confirmed the strike.
By Emmanuel Cruz ·
Oil prices rose in Asian trading on Wednesday after Yemen's Houthi movement said it had struck Saudi Arabia's largest oil refinery with a ballistic missile, renewing concerns about supply from the world's second-largest crude producer [1][2]. Reuters described the attack as part of intensified strikes on the kingdom [1].
Brent crude futures gained $1.59, or 1.4%, to $115.47 a barrel as of 04:35 GMT, while U.S. West Texas Intermediate crude rose $1.43, or 1.4%, to $101.33 [1]. The move followed a drop of nearly $2 on Tuesday [1].
Houthi military spokesman Yahya Saree said on Tuesday that a ballistic missile hit the Ras Tanura refinery and caused a fire at the complex, which includes a shipping terminal on the Gulf west of the Strait of Hormuz, according to Reuters reporting carried by The Jerusalem Post [2]. The refinery has a capacity of 550,000 barrels per day [1]. Saree also said the group targeted the Saudi Ministry of Defense and Abha International Airport, among other sites [2].
Saudi authorities did not confirm any of the strikes [2]. Bloomberg, citing a person familiar with the matter, reported that Saudi Arabia contained a fire near the Ras Tanura terminal [2]. Civil defense briefly issued an air raid alert in Riyadh on Tuesday afternoon, and the Saudi-led coalition said it intercepted and destroyed two ballistic missiles fired at the capital [2]. Houthi-affiliated Al Masirah TV, for its part, reported Saudi strikes on the Yemeni city of Mocha [2].
The location matters for supply. Nearly all Saudi oil exports pass through Ras Tanura and Yanbu, and the Houthis have attacked both before [2]. Ras Tanura was shut for a period early in the Iran war as a precaution [2]. The intensifying hostilities between the Houthis and Saudi Arabia have effectively ended a United Nations-brokered truce from 2022 and come eight months after the Iran war began [2]. The strike claim came one day after officials from Saudi Arabia, Turkey and Pakistan met Iranian officials in Tehran in an effort to ease regional tensions [2].
Analysts say geopolitics remains the dominant driver of prices. Commodity strategists at ING said oil prices remain elevated as the market waits for more clarity on President Donald Trump's next move toward Iran, and that the risk premium could begin to fade if the market gets past the U.S. elections without renewed strikes on Iran [1].
Supply data added support. Industry figures from the American Petroleum Institute showed U.S. crude inventories fell by 2.03 million barrels in the week ended Oct. 23, while analysts polled by Reuters had expected a build of about 15,000 barrels [1]. Separately, OPEC+ is expected to keep its December output targets unchanged at a meeting on Sunday [1].
Why it matters for markets: oil at these levels feeds directly into inflation. Higher energy costs tied to the Middle East conflict are a key reason inflation remains elevated as the Federal Reserve prepares to announce its rate decision on Wednesday, after raising rates last month [3]. Rising oil prices also weighed on European stocks in early trading [4].
What to watch next: any Saudi confirmation or damage assessment at Ras Tanura, official U.S. inventory figures from the Energy Information Administration due Wednesday, the OPEC+ meeting on Sunday, and the Fed's decision at 2 p.m. ET [1][3].
Sources:
[1] Reuters via Yahoo Finance, "Oil rises over 1% after Saudi Arabian refinery attack reignites supply risk", October 28, 2026. https://finance.yahoo.com/energy/articles/oil-prices-rise-attack-saudi-021422891.html
[2] The Jerusalem Post, "Houthis claim to have hit Saudi Ras Tanura oil refinery, defense ministry with ballistic missiles", October 27, 2026. https://www.jpost.com/middle-east/article-913045
[3] Reuters via SRN News, "Nasdaq futures rise as SK Hynix boosts chips before Fed decision, earnings", October 28, 2026. https://srnnews.com/nasdaq-futures-rise-as-sk-hynix-boosts-chips-before-fed-decision-earnings/
[4] Reuters via Global Banking & Finance Review, "STOXX 600 inches lower as investors sift through earnings, higher oil prices", October 28, 2026. https://www.globalbankingandfinance.com/stoxx-600-inches-lower-investors-sift-through-earnings/
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.