Saudi Arabia announced it intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis. These recent attacks have pushed oil prices to a one-week high, driven by concerns over potential supply disruptions.
The Saudi-led coalition in Yemen indicated the missiles were aimed at Taif in western Saudi Arabia and the Yanbu area on the Red Sea. The Houthis, however, claimed their targets included "a sensitive target" in Riyadh and Saudi Aramco facilities in Tanbu.
Oil prices saw a climb of about 3%, though trade was volatile. Prices eased from session highs following reports of discussions between the US and Iran regarding the reopening of the Strait of Hormuz.
These escalating attacks pose a threat to Saudi Arabia's capacity to export oil via the Red Sea. This comes at a time when the Strait of Hormuz is disrupted and the kingdom's east-west pipeline is only just resuming operations after drone strikes earlier in the month.