Houthis Claim Missile Strike on Saudi Arabia’s Biggest Refinery

A missile claim has put a Saudi refinery that handles 550,000 barrels a day back in focus. Yemen’s Iran-aligned Houthi group said Tuesday it struck Ras Tanura, described as Saudi Arabia’s largest oil refinery. Saudi authorities had not confirmed the attack, so the reported hit remains a claim, not a verified account. Even so, oil prices rose Wednesday as traders weighed the risk of another supply disruption against hopes for peace talks. ^1,2

The 550,000-barrel-a-day facility is part of a wider run of Houthi threats and claimed attacks on Saudi oil and transport sites. The group also claimed strikes on an airport and oil facilities over the weekend; Saudi Arabia said it intercepted missiles and drones. The Houthis are based in Yemen and aligned with Iran, and their conflict with Saudi Arabia is tied to the wider struggle for influence in the region. At the same time, Iran, Saudi Arabia, Turkey and Pakistan have kept up talks aimed at easing tensions. ^2,4

Those attacks and talks are pulling prices in opposite directions. Brent crude climbed to $115.36 a barrel Wednesday, while US oil reached $101.12, after both prices dropped nearly $2 Tuesday on hopes for diplomacy. Brent has stayed near six-month highs as fighting and shipping risks unsettle supply, though oil moving through the Strait of Hormuz had recently recovered toward pre-war levels. The uncertainty matters beyond traders: oil supplies and transport costs affect fuel prices, while a long disruption could make supply harder to restore. ^1,2,3

The price swings leave producers and buyers watching both the conflict and decisions on output. OPEC+ is expected to keep its December production targets unchanged at a meeting on Sunday, even though output in most of its seven core members is below target. Meanwhile, Saudi authorities have not confirmed the Houthi claim. The next clear supply decision is Sunday’s OPEC+ meeting. ¹