Oil jumps on new Houthi attacks, reported Kharg Island blasts

Brent oil surged more than 60% thus far in 2021, reaching its highest level since late July as fresh Middle East energy infrastructure attacks fueled concerns over potential supply constraints. The global benchmark rose 1% Tuesday (Sep 8) to near $98 a barrel, edging closer to the $100 mark before settling. Saudi Arabia reported that operations at several energy facilities were halted by Houthi attacks, while West Texas Intermediate futures closed near $93, the highest since early June.

The price increase came ahead of Brent's settlement as Iran reported explosions at Kharg Island, its primary oil export facility, heightening sensitivity in markets. Goldman Sachs analysts raised their oil-price estimates, anticipating that shipping disruptions will persist into 2027. Houthi militants targeted Saudi Arabia's Jazan refinery and domestic market facilities, escalating tensions following Iran's support for the Houthis and a blockade of Saudi oil flows.

Global oil inventories have been declining rapidly, with refined fuel prices soaring worldwide, including Europe's diesel benchmark nearing $200 a barrel. Brent oil is up over 60% so far this year, while Chinese crude imports surged in August despite tensions, as refineries increased purchases from alternative sources.