Crude oil prices held firm on Monday as geopolitical risks in the Middle East intensified, following reports of drone attacks targeting Saudi Arabia.
The kingdom’s military intercepted a barrage of drones launched by Iran-backed militias from Iraq, which were aimed at oil facilities and the capital, Riyadh.
Simultaneously, Yemen’s Houthi rebels claimed responsibility for striking oil transportation infrastructure within Saudi territory, marking a significant escalation in the group’s campaign against the kingdom’s energy sector.
The dual-front pressure on Saudi security has reignited concerns among traders regarding the vulnerability of global oil supply routes.
While no immediate production outages have been confirmed, the proximity of the attacks to critical infrastructure has prompted a risk premium in energy markets.
Brent crude and WTI futures saw modest gains as investors priced in the potential for supply constraints or increased shipping insurance costs in the region.
This development follows a pattern of heightened activity by non-state actors in the Gulf, with Iran-backed groups increasingly targeting energy assets to exert leverage.