Before this development in the oil market, Washington warned that there was a risk of a “rapid escalation” of hostilities in the Middle East, following a series of attacks launched by Yemen’s Houthi rebels against Saudi Arabia, including in the capital Riyadh, which was targeted after months of respite.
The Houthis had previously claimed to have used missiles and drones against Saudi targets, asserting that they had disrupted air traffic by attacking King Khalid International Airport in Riyadh and that a fire had broken out at the Aramco refinery in Rabigh. They also warned international airlines to avoid Saudi airspace, except for areas near Mecca and Medina.
Against the backdrop of these tensions, prices had also risen in previous days: on Wednesday, they increased following the Houthi attacks on Saudi Arabia, while investors also began considering possible additional diesel exports from Russia as a factor that could temper volatility.
