Missiles and drones hit four Saudi cities, including energy facilities, as oil prices rise again
A new escalation in the Middle East war has raised concerns about global oil supplies this Tuesday.
Iran-backed Houthi fighters launched missiles and drones at four cities in southern Saudi Arabia. According to Saudi authorities, 73 people were injured in the attacks.
Abha, Khamis Mushait, Jazan and Najran were targeted. Energy facilities were also affected, including a refinery in Jazan with a processing capacity of approximately 400,000 barrels of oil per day. Fires were reported in several areas.
Oil raises concerns in global markets
The attacks come amid heightened tensions in the Middle East, as the conflict between the United States and Iran continues and disruptions affect the transportation of oil through the Strait of Hormuz.
The price of Brent crude reached $99.46 a barrel during Tuesday’s trading session, after trading near $72 at the beginning of July.
The increase put further pressure on U.S. markets. The S&P 500 fell 0.4%, the Dow Jones dropped 1.1%, and the Nasdaq declined 0.1%.
For the United States, the concern is that a prolonged disruption to global oil supplies could drive up fuel prices and make it more difficult to control inflation.
The situation will also be closely watched by the Federal Reserve, which is preparing for its next interest-rate decision as energy prices continue to put pressure on the economy.
Source: Reuters and Associated Press
