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strikeAug 19, 2026

Global oil price rises sharply after vessel attack at Strait of Hormuz

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Global oil price rises sharply after vessel attack at Strait of Hormuz

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  • currentsapi(Mixed)By Ogaga Ariemu

    Business Global oil price rises sharply after vessel attack at Strait of Hormuz Global oil prices surged sharply as attacks on vessels in the Strait of Hormuz slowed shipping in the Middle East region. An oil price survey showed that Brent and West Texas Intermediate, WTI, crude

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A quarterly report by the Lead Inspector General detailed operations in the Central Command area, stating that US forces conducted approximately 36,000 sorties and struck roughly 13,500 targets in Iran, while deploying over 50,000 service members. The Department of War reported estimated costs of $33.

4 billion as of June 29, with the White House subsequently requesting an $87.6 billion emergency supplemental appropriation.

Location: Tehran
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Saudi Arabia vowed Tuesday to respond "firmly" to attacks by Yemen's Houthis, after the Iran-backed fighters wounded 13 people in the kingdom in an assault using ballistic missiles and drones. The Houthis have been engaged in renewed fighting with Saudi-backed government forces since Yemen's civil war reignited in July, when the group declared a maritime blockade on Riyadh and began targeting its ships in the Red Sea.

They seized control of Yemen's Red Sea coast and the Bab al-Mandab Strait last week, which has become vital as the wider US-Iran war chokes the Strait of Hormuz. The Houthis have also targeted the oil infrastructure of Saudi Arabia, the world's leading crude exporter, pushing oil prices above the $100 threshold.

A Houthi strike in western Yemen on Monday killed eight government soldiers, according to two military sources. The group also claimed a new large-scale attack using "dozens of ballistic missiles and drones" against King Khalid airbase in Khamis Mushait, in southern Saudi Arabia.

A Khamis Mushait resident told AFP he heard "intense blasts" which left fires burning for a "long time". "Honestly, we couldn't sleep at all." In the early hours of Tuesday, the Saudi civil defence issued air-raid alerts in six regions, before lifting them.

The Riyadh-led coalition confirmed Tuesday there had been missile and drone attacks the previous day on Khamis Mushait, Abha and Taif, reporting 13 civilians wounded and damage to seven houses and two vehicles. Saudi Arabia responded with more than 50 strikes, as it had the day before, according to the Houthis.

The coalition said it would deal with the attacks "firmly to protect the sovereignty of the Kingdom" and would take "all necessary operational measures to deter this... hostile and extremist approach". While Saudi Arabia has conducted dozens of airstrikes on Houthi-held areas, it has failed so far to deter the fighters' lightning offensive.

Saudi Arabia's de facto ruler Crown Prince Mohammed bin Salman was expected to hold talks with Egypt's President Abdel Fattah al-Sisi on Tuesday. US media reported last week that President Donald Trump had rejected a personal request from the Saudi crown prince to intervene in the war.

Hazem al-Assad from the Houthis' politburo said the "Yemeni response will continue and escalate as long as they (Saudi Arabia) persist in their aggression against our people". The renewed fighting in Yemen comes as the wider regional war remains at a stalemate.

But Trump on Monday said he was open to holding talks with Iran. "The failing Nation of Iran wants to make a deal, quickly and badly. I will determine whether or not the U.S.A. will choose to engage -- The concept of which we are open to," Trump said on his Truth Social network.

Iran's top security chief Mohsen Rezaei responded by saying on X that "there will be no negotiations until Iran's conditions are met. That is all there is to it." Tehran has repeatedly listed demands including war reparations and the lifting of sanctions as preconditions for ending the war and its blockade of the Strait of Hormuz.

A proposed meeting between Gulf states and Iran over the future of Hormuz was postponed on Monday, with Tehran accusing Riyadh of using Yemen as a pretext to delay the talks. Tehran has long supported the Houthis, a member of its anti-Israel "axis of resistance", including with weapons and technology, but has denied any role in the current war.

"Iran does not interfere in Yemeni affairs," foreign ministry spokesman Esmaeil Baqaei told reporters on Monday, saying the Houthis are "entirely independent actors who make their decisions based on their own interests". The Houthis seized Yemen's capital Sanaa in 2014 at the outset of the civil war, driving the government to Aden in the south.

The following year, Saudi Arabia led a coalition to intervene on the side of the government, launching wave after wave of airstrikes as the conflict escalated into one of the worst humanitarian disasters in the world. The UN's migration agency said Monday that the renewed fighting in the Arab world's poorest country had forced 93,864 people to flee their homes.

Location: Saudi Arabia
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UK Prime Minister Andy Burnham is considering whether to help Saudi Arabia counter attacks from the Houthis in Yemen amid British concerns about a worsening economic hit from the escalating conflict. The premier has received requests from Saudi Arabia for a range of diplomatic and military support, according to people familiar with the matter.

Those requests include operational support for the Saudi military to repel the Iran-supported group's push south along Yemen's Red Sea coast toward the Bab el-Mandeb strait, as well as help to defend against strikes on its territory oil infrastructure, they said.

It's unclear whether Burnham is willing to approve the requests, which haven't been disclosed by the UK government. A spokesperson said Britain would work with partners to support regional stability, declining to be drawn on specifics. The Saudi government did not respond to a request for comment.

The Saudis have also asked the US for more help, though Washington — keen not to see the Iran war escalate — has not said if it will provide extra assistance. Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay Saudi Arabia has suffered from several Houthi missile and drones attacks this month, with the militant group targeting southern towns and Red Sea ports.

On Tuesday morning, Saudi authorities issued air alerts for cities including Jeddah, Yanbu, Jazan and Al Ula, a medieval site that's key to Crown Prince Mohammed bin Salman's attempts to boost tourism. While the government said the danger soon passed, dozens of people have been injured by strikes over the past week or so.

The Houthis, who control land holding most of Yemen's population, have also made gains inside their country and last week captured the port of Mokha and some islands near the Bab el-Mandeb strait. While they were already disrupting shipping through the chokepoint, the extra territory tightens their grip over it.

The fighting presents Burnham with one of his first major foreign policy and economic dilemmas since he became prime minister in July. The UK is determined not to get drawn into another Middle East conflict, not least because it didn't support US President Donald Trump's war on Iran.

Yet the crisis is posing serious challenges for UK economic policy ahead of his administration's first budget next month. The advance by Houthi militants in recent days, and Saudi Arabia halting its East-West oil pipeline following attacks, has helped push up energy prices even more.

The pipeline has been the main outlet for Saudi crude exports since the effective closure of the Strait of Hormuz. Brent crude rose 1.5% to $107.25 a barrel on Tuesday, extending its gain this month to almost 20%. Gilts extended a drop Monday as money markets added to bets on Bank of England interest rate rises off the back of inflation fears.

Traders now fully price five quarter-point BoE hikes by the end of 2027, an outcome that would badly complicate the new premier's key pledge to reduce the cost of living. Pipeline Shutdown Burnham has been advised by his officials that if the Houthis take control of the Bab el-Mandeb Strait it would have a “catastrophic” impact on international shipping and provide another hit to the global economy through a further spike in the oil price and inflation, according to the people, who requested anonymity talking about behind-closed-doors discussions.

British officials fear it could be as long as six weeks before a return to service for the East-West pipeline. It's a bleaker assessment than that of US Energy Secretary Chris Wright, who on Monday said he expects the conduit to be up and running “very soon.

” The UK Treasury is additionally worried that the recent escalation is taking place as the Office for Budget Responsibility prepares its economic and fiscal forecasts for the Oct. 28 budget. Chancellor of the Exchequer John Healey had been hoping to see inflation concerns which are weighing on government borrowing costs ease during the assessment window.

Instead, market moves are going further in the wrong direction and potentially leaving Healey with even less headroom against his budgetary rules. Burnham has agreed to send British military advisers to Saudi Arabia to support its efforts, the people said.

The UK premier is not alone in receiving requests from the Saudis for support. The crown prince, known as MBS and the kingdom's de facto ruler, called Trump last week and urged him to strike the Houthis, Axios reported, though so far Washington has stayed out of the fight other than sending military advisers.

On Saturday, UK Foreign Secretary Ed Miliband spoke by phone to Saudi Foreign Minister Faisal bin Farhan to discuss the Houthi attacks. “The UK stands firmly with Saudi Arabia and the internationally-recognized Government of Yemen,” Miliband said. The Houthis seized the capital, Sanaa, in 2014, triggering a civil war that still divides the country.

The Saudis back the internationally-recognized government. In 2024, under Conservative former premier Rishi Sunak, Britain's military struck Houthi targets in Yemen in response to the group launching attacks in the Red Sea. Labour's then opposition leader Keir Starmer supported the strikes.

As premier, Starmer later deployed military assets to Saudi Arabia, and in March, Britain's Sky Sabre air defense system was integrated into the country, including radars, a control node and missile launchers. Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.

Location: Strait of Hormuz
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The Shanghai Containerized Freight Index rose to 3,662.18 in mid-September, marking seven consecutive weeks of increases, amid reports of logistical disruptions linked to tensions in the Strait of Hormuz and the Red Sea. While industry analysts attribute rising fuel costs to rerouting via the Cape of Good Hope, unverified claims of a U.

S.-Iran conflict and drone strikes on Saudi infrastructure require further confirmation. Consequently, South Korean electronics firms report year-over-year increases in transportation expenses, though the broader impact on export viability remains under assessment.

Location: Strait of Hormuz