Live: ASX to recover from six-week low as Middle East flare-up drives oil price higher

Oil prices surged towards $100 per barrel on Tuesday as fresh fighting erupted in the Middle East, heightening fears of disruptions to crude oil supplies. The escalation followed attacks by Iran-backed Houthi rebels on multiple cities in southern Saudi Arabia, including targets linked to the state-owned oil company. The attacks also reportedly damaged energy infrastructure and came amid heightened tensions between Iran, the United States and Israel.

Brent crude reached $99.46 per barrel, its highest level since July 24, before settling at $97 later in the day. West Texas Intermediate crude also hit its highest mark since June 8, reflecting growing concerns among traders about the conflict's impact on global energy supplies. The Houthis claimed they had launched a broad operation deep inside Saudi territory, targeting cities such as Khamis Mushait, Abha, Najran and Jazan.

Jazan, a significant Red Sea port city, houses a major refinery and power plant, while other locations targeted had oil distribution facilities. Satellite images showed thick smoke over the Jazan refinery and a white smoke column rising from an oil distribution center in Abha. Saudi authorities reported fires at these sites and said 73 people, including women and children, were injured.

The attacks marked a significant escalation after a period of relative calm and raised concerns about the security of oil infrastructure and shipping routes across the Middle East. The Houthis control much of Yemen's populated areas and have previously threatened shipping in the Red Sea. Saudi Arabia has led an Arab coalition fighting the group in Yemen for over a decade.

Meanwhile, fighting between the US and Iran has intensified, with both sides targeting each other through energy and shipping restrictions. The Strait of Hormuz, crucial for global oil supplies, has become a major flashpoint in the conflict. US President Donald Trump predicted oil prices would plummet if the US won the war with Iran, but the latest attacks have increased uncertainty in the oil market, potentially leading to higher fuel prices in Nigeria.