Yemen’s Houthi rebels claimed responsibility for an attack on Saudi Arabia’s Riyadh airport that killed three people on Thursday. On Friday, the United States urged Americans in the Middle East to “exercise heightened vigilance.” Haaretz reported, citing Reuters, The Associated Press and Haaretz, that the Houthis had escalated missile strikes on Saudi Arabia and sought to shut down its airspace. The warning, strikes and widening restrictions all affect civilians living under decisions made by armed powers.
The Warning and the Weapons
The Houthis carried out deadly attacks on airports in Saudi Arabia’s southern region and Riyadh during the week. Debris from an intercepted ballistic missile damaged civilian sites in the kingdom’s capital. The account gives no further details about those sites. But the consequences extend beyond military targets: three people died in the airport attack, and missile debris damaged civilian locations.
The U.S. alert asked Americans across the region to take greater care. Washington also announced fresh sanctions on 17 vessels transporting millions of barrels of Iranian crude oil, as well as petroleum and petrochemical products, to markets in southern and eastern Asia. The stated aim was to squeeze Iran’s oil revenue and pressure Tehran as the regional war continued.
“Treasury is starving the tyrannical regime in Tehran of the money it uses to wage war in the region,” Treasury Secretary Scott Bessent said. Bessent added in a statement: “We will continue exposing those who enable the regime’s oil sales.” His words frame the sanctions as punishment for Iran’s rulers. The measures target vessels carrying Iranian products and seek to limit the revenue available to the country.
President Donald Trump said Thursday he had no intention of ordering attacks on Iran before next month’s midterm elections, temporarily easing supply concerns. In a post on Truth Social, he described Iran as being in a “very bad condition” economically and militarily, said the U.S. blockade on Iranian shipments through the Strait of Hormuz would remain in “full force,” and said the countries were holding “productive discussions.” Military threats, a blockade and negotiations appear side by side in the same message.
Oil Markets Price the Conflict
Oil prices fell on Friday after Trump’s remarks, though Brent crude remained on course for a weekly gain amid Middle East tensions. Brent, the benchmark for two thirds of the world’s oil, traded 0.82 per cent lower at $103.42 a barrel at 10.35am UAE time. West Texas Intermediate, which tracks U.S. crude, fell 0.74 per cent to $90.81 a barrel. Brent had settled more than 4 per cent higher on Thursday, while WTI was set for a weekly decline.
Separate Friday trading figures reported earlier showed Brent down 1.38 per cent at $102.8 a barrel and WTI down 1.37 per cent at $90.24. The figures show a market shifting as officials signal possible military action, restrict oil shipments and manage supply risks.
Hurricane Isaias brought another disruption. It shut in around 63 per cent of U.S. Gulf of Mexico oil production, putting refining infrastructure and export terminals at risk. The hurricane was moving towards the U.S. Gulf coast and was expected to reach it late Friday or early Saturday, bringing heavy rain and potential flash floods. About 500,000 barrels per day of capacity faced risk, said Soojin Kim and Edward Bell from MUFG.
“Brent crude rose 4.1 per cent to $104.20 per barrel on Thursday as renewed Middle East tensions coincided with disruption to US Gulf of Mexico production from Hurricane Isaias,” said Nick Stadtmiller, chief economist and group head of research at Emirates NBD. He said the storm had shut in around 63 per cent of U.S. Gulf oil production and prices fell from intraday highs after Trump said the U.S. was holding productive discussions with Iran.
“Ongoing fighting between Saudi Arabia and its allies against the Houthis are keeping the geopolitical risk in oil markets elevated while shipping in the Gulf and Strait of Hormuz continues to be threatened,” Kim and Bell said. Attacks on ships in the Strait of Hormuz, a vital route for global crude shipments, had increased. People facing the direct danger and market disruption have no seat in these announcements. States and armed forces set the terms, while oil prices register the shocks.