Oil prices rose sharply after Yemen’s Houthi rebels claimed responsibility for attacks targeting Saudi Arabia, including facilities belonging to state-owned energy company Saudi Aramco.
Brent crude, the global benchmark, gained more than 3 percent on Thursday, briefly rising above $108 per barrel before ending the day above $106.50. By Friday morning in Asia, Brent had eased slightly to around $105.77 per barrel.
The Houthis said they launched missile and drone attacks against a “sensitive target” in the Saudi capital, Riyadh, as well as Aramco facilities in Yanbu, a Red Sea port city. The group claimed the attacks successfully achieved their objectives.
Saudi-led coalition forces said they intercepted six ballistic missiles fired towards Saudi Arabia. However, Saudi authorities have not confirmed whether the attacks caused casualties or damage.
Aramco, which supplies roughly 10 percent of global oil demand, did not immediately respond to inquiries.
The latest escalation comes as the United States and Iran continue diplomatic efforts to end their seven-month conflict, with negotiations taking place on the sidelines of the United Nations General Assembly in New York.
Analysts said continued tensions in the Middle East and the vulnerability of key oil facilities and supply routes could keep oil prices elevated.
Tim Waterer, chief market analyst at KCM Trade, said diplomatic efforts were helping limit further price increases, but prices could remain under upward pressure until there is clearer evidence of a lasting reduction in tensions.
June Goh, a senior oil market analyst at Sparta Commodities, said oil prices could remain above $100 per barrel while the conflict involving Iran continues, citing concerns over global oil inventories and supply disruptions.
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