Houthis Attack Saudi Arabia’s Largest Refinery; Global Oil Prices Surge Again

【Financial News, New York — Correspondent Lee Byung-chul】  Global oil prices rose again after Iran-backed Houthi rebels in Yemen said they had attacked Saudi Arabia’s largest refinery. With U.S. President Donald Trump leaving open the possibility of further military action against Iran, and Israel’s election expected to leave the country in political deadlock, concerns are growing that the war in the Middle East will drag on and escalate.
On the morning of the 28th (local time), Brent crude futures, the benchmark for international oil prices, stood at $114.68 a barrel, up 0.7% from the previous trading session. U.S. West Texas Intermediate (WTI) futures also traded at $101.32 a barrel, up 1.42%.
The direct trigger for the rise in international oil prices was the Houthi rebels’ attack on a Saudi Arabian refinery. The rebels claimed the previous day that they had attacked the Ras Tanura refinery in eastern Saudi Arabia with a ballistic missile.
Ras Tanura is a strategic hub where Saudi Arabia’s key oil facilities are concentrated, linking refineries with crude oil export infrastructure. It has not been confirmed how much the attack actually disrupted refinery operations, but markets are focused on the fact that the Middle East’s energy supply chain has once again become a target.
There are concerns that the war in the Middle East could spread to neighboring oil-producing countries if the Houthi rebels’ attack raises military tensions between Saudi Arabia and Iran. As concerns about disruptions to crude oil supplies and transport grow, a geopolitical risk premium is being factored into international oil prices.
President Trump’s hard-line remarks on Iran are also putting upward pressure on oil prices. At a campaign rally in Texas on the 27th, Trump said the war with Iran would end on his terms.
He stressed that he could end the war quickly, while making clear that preventing Iran from possessing nuclear weapons was a precondition for any agreement.
Israel’s political uncertainty is also complicating the situation in the Middle East. Exit polls from Israel’s general election held on the 27th projected that neither Prime Minister Benjamin Netanyahu’s bloc nor the opposition led by Gadi Eisenkot would secure a parliamentary majority.
Of the 120 seats in Israel’s parliament, 61 are needed for a majority to form a government. But with neither bloc reaching a majority, the likelihood has grown that coalition negotiations will drag on.
Israel’s political deadlock could also affect its future policy toward Iran. If political uncertainty continues until a new coalition government is formed, it could become harder to predict the course of military responses to Iran and diplomatic negotiations with it.



[email protected] Correspondent Lee Byung-chul Reporter