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Oil price approaches $100 a barrel after attacks on Saudi oil facilities – business live

Developed over time first seen 2 months ago

The Guardian · 2 months ago

Oil prices climbed towards $100 a barrel as Brent crude settled at its highest level since 24 July, after Yemen's Iran-aligned Houthi rebels struck energy facilities in Saudi Arabia, including Saudi Aramco sites in Jizan, home to one of the kingdom's largest refineries. The attacks halted operations at some facilities and wounded more than 70 people, while Iran separately threatened to impose a maritime exclusion zone across the Persian Gulf in response to what it called US "economic warfare". Together, the developments raised fears of a wider disruption to Middle Eastern energy supplies and shipping through the Strait of Hormuz.

Brent crude held above $98 a barrel as the standoff unfolded, with a senior Iranian security official describing Tehran's response to US pressure as "fundamental". Analysts warned that sustained high oil prices risk feeding inflation just as central banks, including the Bank of England, weigh their next moves on interest rates, adding a fresh source of uncertainty to the global economic outlook.

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In short

Brent crude nears $100 a barrel after Houthi attacks on Saudi facilities.
Iran threatens Persian Gulf exclusion zone amid tensions with the US.
Oil-price surge stokes inflation fears for central banks worldwide.

How this story developed

2 months ago Oil prices continued their approach towards $100 a barrel on Tuesday, with Brent crude holding above $98 after Yemen's Iran-aligned Houthi rebels attacked energy facilities in Saudi Arabia, halting operations at some sites and wounding more than 70 people.
2 months ago Oil prices climbed towards $100 a barrel as Brent crude settled at its highest level since 24 July, after Yemen's Iran-aligned Houthi rebels struck energy facilities in Saudi Arabia, including Saudi Aramco sites in Jizan, home to one of the kingdom's largest refineries.
2 months ago Oil prices climbed towards $100 a barrel on Monday after Yemen's Iran-aligned Houthi rebels attacked energy facilities in Saudi Arabia, halting operations at some sites and wounding more than 70 people.

8 Sep, 09:13NPR Houthi attacks on Saudi Arabia ignite fires at oil facilities and wound 73 people
8 Sep, 10:37The Guardian Oil price approaches $100 a barrel after attacks on Saudi oil facilities – business live

Explained simply

Oil is the raw material behind petrol, diesel and much of the world's energy, and its price affects almost everything, from transport costs to the price of goods in shops. Brent crude is the main international benchmark used to set oil prices globally. When it rises sharply, it tends to push up inflation, making it harder for central banks like the Bank of England to bring down interest rates.

The recent price rise follows attacks on oil facilities in Saudi Arabia, a major oil-producing country, by Houthi rebels based in Yemen who are aligned with Iran. Saudi Arabia and Iran are regional rivals, and Iran has been in an escalating standoff with the United States, which it accuses of waging "economic warfare" against it. A key concern is the Strait of Hormuz, a narrow sea passage between Iran and Arabian Gulf states through which a large share of the world's oil is shipped.

This matters because higher oil prices ripple through the wider economy, raising costs for businesses and households and complicating decisions for policymakers such as the Bank of England, which sets UK interest rates. Any disruption to shipping through the Strait of Hormuz would be watched closely, since it is one of the most important routes for global energy supplies.