Yemen's Houthis claim missile, drone strikes on multiple targets in Saudi Arabia
Yemen's Houthi group said on Monday that it carried out three military operations using ballistic and cruise missiles and drones against airports, an oil facility, and military sites across Saudi Arabia, Xinhua News Agency reported.
According to the statement, Houthi spokesman Yahya Saree said that the first operation targeted King Khalid International Airport in the capital Riyadh, claiming it hit its target and disrupted air traffic.
The second targeted a refinery of state oil company Aramco in Rabigh, in the Mecca region, claiming the attack caused a fire at the facility.
The third operation targeted Abha Airport, the Khamis Mushait base, and Akfa camp in the southern Asir region, along with what Saree described as other “sensitive sites” in Najran and Jazan in southwestern Saudi Arabia.
A Houthi spokesman claimed the operations were in response to what it described as intensified Saudi strikes on Houthi-held areas in Yemen.
Meanwhile, Israeli media reported Monday that Israel is preparing a potential attack against Iran, either in coordination with the US or independently.
Seperately, US President Donald Trump showed optimism regarding the outcomes of the current offensive led by Saudi Arabia and the Saudi-backed Yemeni forces against the Houthis. He said, "It will work out very well.”
Market reaction
At the time of writing, the West Texas Intermediate (WTI) is down 2.21% on the day at $88.35.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
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