Saudi Aramco: Houthi attacks on Riyadh oil sites trigger fresh market anxiety

Yemen's Houthi rebels have launched a coordinated barrage of ballistic missiles and military drones targeting Saudi Aramco oil facilities in Riyadh and the Khurais region, threatening to disrupt a brief period of calm in global energy markets.

The rebel group said the weekend operation successfully hit its targets and ignited fires. They framed the strikes as retaliation for dozens of Saudi-led coalition air attacks inside Yemen over the preceding hours.

Saudi authorities have disputed the scale and success of the attacks. Coalition spokesman Turki al-Maliki said the Houthis are attempting to manufacture a "false victory" to distract from significant personnel losses on the battlefields of Yemen's southwestern Taiz province.

Geopolitical friction meets recovering supply

The escalation comes at a highly sensitive moment for global energy supplies. Only hours before the strikes, international crude benchmark prices had begun to soften. Brent crude was down slightly at $101.70 a barrel, while West Texas Intermediate (WTI) fell to $90.27.

This marginal relief was driven by two major market developments. First, the Group of Seven (G7) agreed to release 100 million barrels of diesel and crude from their emergency stockpiles, responding to pressure from US President Donald Trump. Second, Middle Eastern export volumes have quietly rebounded to pre-war levels.

Data from trade intelligence firm Kpler shows regional exports reached 16.5 million barrels per day in September, returning to their historic average. This recovery was aided by Saudi Arabia rapidly restoring its vital East-West Pipeline to more than 80% of its 7-million-barrel-per-day capacity following an earlier drone disruption. The pipeline allows Saudi crude to bypass the volatile Strait of Hormuz and exit via the Red Sea.

Fears of a wider regional offensive

Despite the underlying supply recovery, the threat of direct hits on Saudi energy infrastructure has kept traders on edge. The market is now bracing for a potential military escalation.

Yemen's internationally recognised, Saudi-backed government announced it is launching a major military campaign to reclaim Houthi-controlled territory. Behind the scenes, two US officials said that Saudi Arabia and Yemeni government forces are drawing up plans for a large-scale offensive.

If these operations move forward, they could trigger a cycle of retaliatory strikes on Saudi infrastructure and Red Sea shipping corridors. The Houthis have already threatened a maritime blockade against Saudi shipping.

Asian buyers on alert

Any renewed disruption will fall heaviest on Asian refiners, who remain highly dependent on Middle Eastern crude.

Japan, which once relied on the Strait of Hormuz for 91% of its oil, saw its imports plunge by 64% earlier in the conflict. While it has diversified its suppliers, the Middle East still accounts for about 60% of its imports. Taiwan is in a similar position, relying on the region for up to 75% of its crude, backed by roughly 100 days of strategic reserves.

With OPEC+ postponing its scheduled review of future production quotas, the oil market remains exceptionally sensitive to geopolitical shocks. If the Houthis release visual evidence of damage to Aramco sites, or if the planned Saudi coalition offensive begins, the temporary relief bought by G7 reserves could quickly evaporate.