Oil prices climbed in early European trading Tuesday after attacks on energy-sector facilities in southern Saudi Arabia temporarily halted some operations, adding to concerns that Persian Gulf oil supplies could remain constrained.
Front-month Brent crude oil futures rose to $99.2 a barrel, while front-month West Texas Intermediate crude oil futures climbed to $94.5 a barrel.
Saudi Arabia's Energy Ministry said several energy-sector facilities and installations in the kingdom's southern region were targeted Tuesday morning, but its initial statement didn't say who carried out the attacks. The Saudi-led coalition in Yemen said Tuesday that Iran-allied Houthi militant attacks targeted civilian and economic sites in southern Saudi Arabia.
The attacks caused fires at several locations and led to a temporary halt in some operations, while specialized teams worked to contain the fires, secure the sites and assess the damage, the ministry said. It didn't identify the facilities involved or quantify any impact on oil production or exports. It said authorities were taking measures to ensure the continuity of operations under approved operational plans.
Saudi Aramco's oil facilities in Jazan, which includes one of the country's largest refineries, came under fresh attacks Monday, two people familiar with the matter said. Aramco is still assessing the damage, they said.
Aramco didn't respond to a request for comment. It hasn't publicly commented on the attack, which was reported by other media Monday.
"The recent escalation of the Middle East conflict has increased the likelihood of a prolonged standoff, punctuated by calibrated military action by the U.S. and Iran," ANZ Research analysts said. "This could see Persian Gulf supply remain constrained through the rest of 2026."
Jazan is home to Aramco's integrated refinery complex, which is designed to process as much as 400,000 barrels of crude a day and produce fuels including gasoline and ultra-low-sulfur diesel. The Saudi ministry's statement didn't say whether the refinery itself was among the facilities affected.
The attacks come as the U.S.-Iran war, now in its seventh month, continues to disrupt energy flows through the Strait of Hormuz, while fighting in Yemen has intensified.
A spate of tit-for-tat attacks between Saudi Arabia and Iranian-allied Houthi militants in Yemen shows how the war in Iran is fueling instability throughout the Middle East and heightening the risk of further disruption to global energy flows after months in which Iran's closure of the Strait of Hormuz caused the worst oil supply disruption in recent history.
Supply from Iran is meanwhile becoming increasingly restricted. No Iranian crude has crossed the U.S. blockade since mid-July, while the amount of Iranian crude already aboard vessels outside the blockade has fallen to about 29 million barrels from roughly 90 million barrels in mid-July, The Wall Street Journal reported Tuesday, citing Kpler.
The dwindling availability of Iranian barrels is also reshaping regional trade, with China increasingly turning to alternative suppliers including Saudi Arabia and Iraq, according to the Journal. That adds to the market's focus on whether Gulf producers can maintain output and exports as attacks spread to energy infrastructure.