Ras Tanura attack claim lifts Brent and WTI prices

Oil rose on Wednesday as the Houthis claimed a Ras Tanura attack on the kingdom’s largest refinery, yet Riyadh gave no confirmation.

By 03:10 GMT, Brent futures had gained 1.6 percent, reaching $115.70 per barrel. Meanwhile, WTI crude in the US rose around 1.35 percent, to $101.30. Saudi Arabia has not commented on the Ras Tanura attack, and the damage remains unknown.

What the Houthis say about the Ras Tanura attack

Houthi spokesperson Yahya Saree said on social media that a ballistic missile hit the refinery in the Eastern Province and caused massive fires. Aramco‘s Ras Tanura plant handles up to 550,000 barrels daily.

Separately, Saree said the group hit the Defence Ministry building in Riyadh, along with airports at Abha and Najran and an air base at Khamis Mushait. Riyadh has not confirmed any of those claims, and the Ras Tanura attack claim remains unverified.

Saudi state media reported a different incident. It said air defences intercepted and destroyed a missile aimed at Taif in Mecca Province.

Earlier this month, the Houthis struck an administrative block at Aramco’s Dhahran compound.

Why the Ras Tanura attack claim moves oil

Both benchmarks had fallen over the previous two days, so the jump reversed part of that drop. Even so, each has gained over 11 percent in a month.

The conflict between Saudi Arabia and the Iran-backed group has escalated this month. As a result, traders worry that supply could suffer, and they have added a risk premium to prices.

Aramco produced less oil in August than in any month since 1990. Meanwhile, chief executive Amin Nasser has said in speeches this month that a wider East-West pipeline could carry 10 million barrels daily. The firm is also doubling its storage and building new pipelines.

Diplomacy and Gulf markets

The new claim came a day after talks in Tehran. Saudi Arabia, Pakistan and Turkey, partners in the Mecca Defence Alliance, met Iranian officials to cool tensions and open channels of negotiation.

Prince Khalid bin Salman, the kingdom’s defence minister, joined that meeting on Monday. The Saudi government said the aim was to prevent a return to military escalation.

Gulf equities mostly ended Tuesday in the green following the talks. Saudi Arabia’s main index climbed over 2 percent as Aramco added nearly 2 percent. Dubai gained 2 percent, and Abu Dhabi advanced above 1 percent.

Qatar and Kuwait also closed higher, but Bahrain and Oman ended lower. The latest claim, however, shows how fragile the effort to contain the regional conflict remains.

Hormuz adds to the pressure

In another incident, Iran said a tanker caught fire after striking naval mines east of the Strait of Hormuz, according to state-backed media.

Iran’s armed forces chief of staff, major general Ali Abdollahi, warned vessels that ignore Hormuz’s designated routes of serious security risks.

For now, the Ras Tanura attack claim keeps oil nervous. Without official confirmation of damage, traders wait for word from Riyadh and for the next move by the Houthis.