Attacks on Saudi Oil Sites: Why Gas Prices Could Be Affected

Iran-backed Houthi forces attacked four cities in southern Saudi Arabia on Tuesday, wounding more than 70 people and setting oil facilities on fire, according to CBC and AP reporting published September 8 (CBC; AP). The Saudi-led coalition in Yemen confirmed 73 injured in the strikes. The Financial Times reported Monday that Aramco's Jazan oil facilities were struck and damage was being assessed (Reuters.

The Houthis are a rebel group from Yemen, backed by Iran, that has been fighting Saudi Arabia for years. These latest strikes are part of a monthslong pattern of growing attacks. On July 23, Houthi militants attacked two Saudi oil tankers in the Red Sea, causing fires on both vessels (AP). The following day, Houthi drones targeted oil installations in the Red Sea coast ports of Jizan and Yanbu, and Houthi leadership declared all Saudi targets within range (Reuters). On July 30, sources disclosed that the Houthis were launching attacks on Saudi Arabia from Iraqi territory, including strikes on facilities in the kingdom's eastern province — its main oil-producing region (Reuters. On August 9, Saudi Arabia reported a fire at an Aramco facility in Jizan had been extinguished after a refinery was targeted (Al Jazeera. The same day, the Houthis launched an attack on a Yemeni port targeting Saudi soldiers, killing seven.

Oil prices rose to a six-week high following the latest attacks on Saudi sites (Reuters. Goldman Sachs and HSBC, two of the world's largest banks, both raised their oil price forecasts for 2026 and 2027 in response to the heightened supply risk.

Why does this matter for you? Saudi Arabia is one of the world's biggest oil producers. When attacks threaten its ability to produce and ship oil, the price of oil goes up. That can eventually show up at the gas pump and in heating bills.

The attacks are not new. In September 2019, Houthi drones struck the world's largest oil processing facility and another major oilfield, knocking out half of Saudi Arabia's oil supply (AP). The Soufan Center documented that the operation involved ten drones, caused a fire, and forced a partial production shutdown (Soufan Center. In November 2020, a Houthi missile struck a Saudi oil facility in Jiddah; the Saudi stock exchange traded slightly up and oil held above $40 a barrel (AP. In March 2022, Houthi rebels attacked an oil depot in Jiddah ahead of a Formula One race (AP.

What makes this round different is scale. Previous strikes hit one facility or one coastline at a time. The September 2026 attacks hit four cities at once. The July reporting confirmed a second attack route from Iraqi territory, extending the Houthis' reach beyond Yemen. And the targeting now spans the Red Sea coast, the eastern province, and shipping lanes all at the same time.

For oil markets, the question is whether these attacks will actually cut Saudi oil production. The 2019 precedent is a warning: a single coordinated drone attack knocked out half of Saudi output. The current damage assessment at Jazan is still underway, and no production figure has been released. But the market is already moving on the fear of disruption alone.

Saudi stocks have historically taken these strikes in stride. In November 2020, the Saudi stock exchange actually ticked up on the day of a missile strike. That resilience reflects Saudi Arabia's track record of restoring production quickly, and the fact that its oil infrastructure is spread across multiple locations. Whether that calm holds under simultaneous attacks from multiple directions is untested.

The broader context here is that the Houthis appear to be changing their approach. Declaring all Saudi targets within range, launching attacks from Iraq, and hitting multiple cities at once all suggest a force that has moved from occasional harassment to sustained pressure on Saudi energy infrastructure. The imbalance is stark: each attack that fails to disrupt supply makes the market less sensitive, while a single successful large-scale strike on the eastern province would send prices soaring overnight. The major banks' revised forecasts suggest they are beginning to take that worst-case scenario seriously.