Houthi attacks on Saudi oil sites hit Gulf markets, raise energy security fears

Gulf stock markets saw declines following Houthi attacks on Saudi oil sites in the Red Sea, which reportedly escalated tensions in the region. The incidents have raised concerns over energy security, particularly affecting Saudi Arabia’s crucial oil installations linked to Aramco. This development comes as Brent crude prices had already surpassed $100 per barrel due to previous attacks on tankers in the area. The ongoing conflict and its implications for Saudi oil logistics continue to weigh on investor sentiment across the Gulf. Key Takeaways Gulf markets appear to have reacted negatively to the Houthi attacks, suggesting increased geopolitical tension in the region. Pricing suggests market participants view the possibility of crude oil reaching a new all-time high as less likely, with July sub-market odds at 6.7% YES. The probability of WTI Crude Oil hitting $130 in July remains low, with market pricing at 0.2% YES. What to Watch Markets are closely monitoring further developments in the Middle East that could impact oil supply and prices. If tensions continue to escalate, this could be consistent with scenarios where oil prices rise further. Key actors such as OPEC and Saudi Ara...