Oil prices steady as Houthi attacks on Saudi Arabia raise supply fears

Oil prices remained largely stable in early Asian trading on Friday as concerns over potential supply disruptions persisted following Houthi attacks on Saudi Arabia, the world’s largest crude oil exporter.

Brent crude futures slipped 21 cents, or 0.2%, to $112.96 a barrel, while US West Texas Intermediate (WTI) crude fell 27 cents, or 0.3%, to $98.12.

The modest declines came after oil prices surged around 4% on Thursday, pushing Brent to a five-month high as escalating regional tensions heightened fears of further disruptions to global energy supplies.

Despite Friday’s slight retreat, Brent was on track to record its third consecutive weekly gain after settling at its highest level since May 4 in the previous session. WTI, however, was heading towards a weekly decline, potentially ending a two-week winning streak.

Market concerns intensified after Saudi Aramco ordered the evacuation of its headquarters in Dhahran, near the Gulf coast and Bahrain, on Thursday, Reuters reported. The move came as fighting between Saudi Arabia and Yemen-based Houthi forces escalated, raising fresh questions about the security of the kingdom’s oil infrastructure.

Saudi Arabia plays a critical role in global energy markets, meaning any sustained disruption to its production or export facilities could tighten supplies and push prices higher.

The conflict has also raised concerns about shipping through Bab el-Mandeb, a strategic maritime chokepoint connecting the Red Sea with the Gulf of Aden. The waterway is a vital route for international trade and energy shipments, making any threat to its security a potential source of market volatility.

Additional supply concerns emerged from Libya, where a pipeline valve carrying crude from the Hamada and Tahara oilfields to Zawiya port was shut. The closure reduced production at both fields, according to the head of Libya’s National Oil Corporation, who spoke to Reuters on Thursday.

Meanwhile, developments involving Russia and Ukraine remained another factor influencing the energy outlook. Moscow said it was prepared to resume US-mediated negotiations with Kyiv next month after Russian President Vladimir Putin met US envoy Steve Witkoff in St Petersburg.

Ukrainian President Volodymyr Zelenskiy expressed hope that the talks, which would be the first since February, could take place in early November.

Russia was the world’s third-largest crude oil producer in 2025, behind the United States and Saudi Arabia, according to US energy data. Sanctions imposed following Russia’s 2022 invasion of Ukraine have also reshaped global energy trade and contributed to uncertainty surrounding supplies.

With geopolitical tensions continuing across key oil-producing regions and shipping routes, traders remain focused on developments that could affect production, exports and transportation.

Although prices eased slightly on Friday, the latest developments suggest that concerns over supply security could continue to keep the oil market volatile.