Brent crude climbed 4% to $107.90 a barrel on Thursday after Saudi forces intercepted six ballistic missiles fired by Yemen’s Iran-backed Houthis toward Taif and Yanbu, a key alternative route for oil exports. Damage and casualties were unclear; Brent later eased to about $105.
Saudi Arabia was working to restore pumping along its East-West pipeline, shut on September 11 after drone attacks Riyadh attributed to Iraqi militias. The strikes on Yanbu came as prospects for restarting crude exports from the terminal were improving, industry sources said.
Higher oil prices and stronger-than-expected US activity fueled inflation concerns as a global bond sell-off deepened. Markets were pricing in three US rate rises by April next year, with a 70% chance of another Federal Reserve rise in October.
