Oil prices move higher after Yemen's Iran-backed Houthis claim Saudi tanker strike

On Tuesday, Yemen's Houthi rebels claimed responsibility for a drone strike on a "sensitive target" at Najran Airport in southern Saudi Arabia. The attack was reported by the group's military spokesman, Yahya Saree, who stated it was "precise" and retaliatory for alleged Saudi drone incursions into Yemeni airspace over the Saada and Hajjah governorates. The statement emphasized that any violation of their airspace would not go unpunished.

Earlier in July, the Houthi group asserted responsibility for targeting Saudi Aramco's oil facilities in Jizan and Yanbu. However, Houthi claims have been known to be exaggerated in the past. Saudi Arabia responded to the alleged drone incursions with air strikes on Houthi military facilities, asserting its commitment to protecting commercial shipping while accusing the rebels of serving foreign agendas.

The Houthi rebels also announced a "maritime embargo" on Saudi Arabia on July 20, which raised concerns about further instability in Gulf trade. This move was described by the Houthis as a response to the Saudi blockade of Yemen, a claim that heightened tensions in the already volatile region. The year 2022 saw the end of a ceasefire in the Yemeni civil war, which had claimed hundreds of thousands of lives.

The conflict, marked by fighting and famine, was paused under the truce but broke down last month, with the Houthis effectively joining the broader war waged by Iran since its attack on the US and Israel.