Oil price volatile as Houthi attacks renew supply crunch fears

Oil prices have remained volatile following a surge in attacks on Saudi Arabia by Yemen's Houthi rebels, reigniting supply concerns in the market. Brent, the global benchmark for two-thirds of the world's oil, saw a 0.68% drop to $81.93 a barrel, while West Texas Intermediate fell 0.39% to $76.99 per barrel. The Houthis launched assaults on the southern region of Saudi Arabia, a Saudi-linked ship in the Red Sea, and the Najran airport on Tuesday, Wednesday, and Thursday, respectively.

The blockade imposed by the Iran-backed group has disrupted Saudi oil exports. Simultaneously, the Iran war, nearing six months, continues to simmer, with some signs of a potential agreement between the US and Iran on shipping in the Strait of Hormuz, which led to a temporary drop in oil prices. However, the optimism trade is unwinding as the physical situation remains unchanged, and Iranian hardliners could undermine any deal reached. Opec+ recently agreed to increase crude output for a sixth consecutive month in September.

Brief written by urgent.news from The National UAE's own syndicated text. Machine-written — it may contain errors, so check the original before relying on it.