Houthi Attacks on Saudi Aramco Sites Push Brent Crude Above $106

Brent crude rose more than 3 percent on Thursday after Yemen's Houthi rebels claimed missile and drone attacks on Saudi Arabia, including strikes on facilities belonging to state oil giant Aramco, according to Al Jazeera.

What did the Houthis claim to hit?

The Iran-aligned group said it launched missile and drone strikes on a "sensitive target" in Riyadh and on Aramco facilities in the Red Sea city of Yanbu, Al Jazeera reported. In a statement carried by the Houthi-run Yemen News Agency, the group said both operations "achieved their objectives successfully."

Saudi-led coalition forces said they intercepted six ballistic missiles fired toward the kingdom, according to the report. Saudi authorities have not confirmed whether the attacks caused damage or casualties. Aramco did not respond to inquiries outside regular business hours, Al Jazeera said. The company supplies roughly 10 percent of global oil demand.

How high did oil prices climb?

Brent futures for November settled above $106.50 a barrel Thursday after briefly topping $108, Al Jazeera reported. Prices eased slightly Friday morning in Asia, with the benchmark at $105.77 a barrel as of 02:00 GMT.

"Relative to the post-war trend, these levels remain elevated and reflect the reality that critical supply routes and facilities are still vulnerable," Tim Waterer, chief market analyst at KCM Trade in Sydney, told Al Jazeera.

Waterer said diplomatic efforts underway in New York are providing "some counterweight," but that "until there is clearer evidence of a durable de-escalation, the upside bias remains in place."

Why are prices already elevated before this attack?

The strikes landed amid supply constraints tied to the US-Israel war on Iran, now in its seventh month, Al Jazeera reported. June Goh, a senior oil market analyst at Sparta Commodities in Singapore, told the outlet that oil would likely stay above $100 a barrel as long as the conflict with Iran continues. "With no clear resolution in sight, the gap in oil inventories globally is getting wider," Goh said.

Is there a diplomatic path to lower prices?

The US and Iran are holding renewed talks on the sidelines of the UN General Assembly in New York, according to Al Jazeera. Iranian President Masoud Pezeshkian said Thursday he hoped Washington would return to the Memorandum of Understanding that had aimed to end the war — an agreement that lapsed in mid-August without a peace deal — before the US midterm elections in November.

What happens next for Saudi oil supply?

Saudi authorities have given no public damage assessment for Yanbu or Riyadh, and Aramco has not issued a statement confirming or denying operational impact, per Al Jazeera's reporting. Traders are watching for confirmation of physical damage, further Houthi claims, and the outcome of the US-Iran talks in New York as the immediate drivers of where Brent settles next.

Artiglio is A coming-soon iPhone chief of staff for briefings and drafts. Not on the App Store yet.