A Saudi Aramco oil facility located in Jeddah, Saudi Arabia, was hit by a missile launched by Yemen’s rebel Houthi militia on Friday, reports on social media suggested. According to Charles Lister
A huge plume of smoke could be seen above an oil facility in the Saudi Arabian city of Jeddah on Friday, according to multiple media reports, shortly after Yemen’s Houthi group said they would be issuing a statement on a military operation.
The news sent oil prices jumping higher, with WTI surging back to $112 from around $110 and also weighed on equities, with the S&P 500 dropping about 25 points to 4515 from around 4540.
The Iran-backed Houthis did not immediately claim they were behind any strike, but a tweet from a military spokesperson earlier in the day said the group was due to announce an operation “deep” within Saudi Arabia, according to a Reuters translation.
Brent crude rose $1.20, or 0.7%, to $119.92 a barrel just after the news, while U.S. West Texas Intermediate crude was up $1.04 , or 0.9%, to $113.34. Both had traded in negative territory earlier in the session.
A spokesperson for Saudi Aramco was not immediately available for comment when contacted by CNBC.
On Sunday morning, Saudi authorities confirmed an attack on Aramco facilities last weekend, with Houthi rebels using missiles and drones to target at least six sites across the kingdom, including an Aramco fuel depot and a liquefied natural gas plant.
“There were no injuries or fatalities, and no impact on the company’s supplies to customers,” Aramco CEO Amin Nasser said on an earnings call on Sunday.
A Yemeni Houthi spokesperson later said that the group would be announcing more details on a wide operation in Saudi Arabia later in the day.
— Charles Lister (@Charles_Lister) March 25, 2022