Oil Rises After Houthis Target Saudi Tankers in Red Sea

Key facts

• Two Saudi oil tankers, Encelia and Layla, were targeted by Houthi threats in the Red Sea.
• The Houthis claimed responsibility for the attacks, citing a blockade on Saudi maritime navigation.
• One tanker, Encelia, was reportedly hit by a missile, causing a fire.
• Oil prices surged following the attacks.
• The US and Pakistan condemned the Houthi actions.

Oil prices rose after Iran-backed Houthis attacked two Saudi oil tankers, Encelia and Layla, in the Red Sea. The Houthis claimed responsibility for the missile and drone attacks, stating they were enforcing a maritime embargo on Saudi Arabia and that the tankers violated this blockade. One of the tankers, Encelia, was reportedly hit by a missile, causing a fire. The incidents caused shipping to change course and led to a surge in oil prices. The US and Pakistan have condemned the Houthi threats to shipping and Saudi Arabia. Analysis suggests that a Houthi blockade of Saudi Arabia would strain US military resources already engaged in the region. Iran had previously instructed the Houthis to prepare to disrupt Red Sea oil routes if the US attacked Iranian infrastructure.