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WTI jumps after Houthi threat to target Saudi oil facilities
WTI briefly fell to 78.37 before rebounding to 80.29, slipping at 79.10 as the move followed renewed concerns about attacks on Saudi oil sites and export routes.
West Texas Intermediate oil swung early Thursday after the Houthis warned they would target all Saudi oil sites and key facilities if Saudi Arabia escalates its actions against Yemen, a threat that lifted prices from an intraday low.
According to FXStreet, WTI traded down to 78.37 during the European morning before ripping nearly two dollars to 80.29, though the rally failed to hold above the 50-day Exponential Moving Average at 80.21. The American benchmark then changed hands near 79.10, down 0.81% on the session.
FXStreet also linked the price volatility to a broader escalation cycle in Yemen over several days, starting with bombings around Sanaa airport, followed by Houthi missile and drone strikes on Saudi targets including Abha International Airport, and further threats involving warnings to airlines about Saudi airspace.
The article noted that the market has largely treated Yemen as secondary to the Strait of Hormuz, but it argued Riyadh has been rerouting a growing share of exports through the East-West Pipeline to Yanbu on the Red Sea, making Saudi facility and chokepoint targeting a direct risk to that workaround. FXStreet added that Washington reinstated its naval blockade of Iranian ports and followed with strike waves after attacks on commercial vessels, while U.S. transit fees for the Strait were also being floated.
Latest closeWTI crude $80.18 ▲1.1%