Oil rises after Houthi attack on Saudi capital

Oil prices experienced a slight decline on Monday, as traders kept a close eye on the potential return of shipments from Saudi Arabia following recent Houthi attacks on sensitive sites in Riyadh and an Aramco facility in Yanbu. The attacks, carried out by Iran-backed Houthis, have heightened tensions in the Middle East, while the US and Iran continue to remain in a standstill.

Brent crude futures fell by 81 cents, or 0.78%, to $103.06 a barrel, and US West Texas Intermediate crude slipped by 89 cents, or 0.89%, after experiencing a 1.58% decrease in the previous session. The Houthis' assault on Saudi Aramco's East-West pipeline has led the state energy firm to boost exports through the Strait of Hormuz from August, when shipments were halted, bringing total OPEC kingpin exports to over 4 million barrels per day (bpd) so far in September.

Despite the disruption, Middle East oil flows have remained robust, averaging 17.1 million bpd over the past 10 days, roughly 6.1 million bpd lower than the 2025 average. Saudi Arabia's pivot has been notable, with satellite data indicating oil flowing through the Strait of Hormuz at an average of 2.9 million bpd over the last six days, up from just 700,000 bpd in August.

China has urged Iran to assist in curbing the Houthis' aggression following an appeal from Saudi Arabia in response to the attacks, according to three Iranian sources familiar with the situation. Iran and the US have exchanged new threats on Sunday, even though President Donald Trump expressed openness to meeting Iranian President Masoud Pezeshkian, who is anticipated to attend the United Nations General Assembly in New York this week.

Iran has communicated its conditions to mediators for re-engaging in talks aimed at resolving the conflict with the US, as cited by Al Jazeera in an interview with Iran’s security chief, Mohsen Rezaei, on Saturday.