The refinery strike extends a campaign that had already targeted Saudi shipping. Earlier in the week, the Houthis claimed attacks on two Saudi oil tankers, the Encelia and the Layla, in the Red Sea, and announced a maritime blockade against the kingdom. Saudi Arabia confirmed the Encelia was hit, causing a fire at the vessel’s bow, though all crew were reported safe. The Houthis said they also forced roughly ten other ships to retreat.
The escalation directly threatens Saudi Arabia’s Red Sea export route, which became vital after the Strait of Hormuz was severely disrupted earlier in 2026. Wood Mackenzie data shows Saudi crude exports through the Yanbu terminal peaked at 4.07 million barrels per day in March before falling 41% to 2.39 million barrels per day by June as the kingdom briefly shifted back to Gulf loadings under a short-lived US-Iran peace deal. The Bab el-Mandeb Strait, the southern gateway to the Red Sea, carried 7.4 million barrels per day of total petroleum volumes in June—about 7% of global output.
Oil markets lurched in response. Brent crude surged past $100 a barrel on Thursday before retreating nearly 4% on Friday to settle at $96.78, while WTI fell 3% to $89.31. Despite the pullback, both benchmarks posted strong weekly gains—Brent up nearly 10% and WTI around 8%. The Friday decline was partly attributed to reports of China-backed peace efforts and Pakistan-mediated talks between the US and Iran.