Jizan Oil Hub Attacked Amid Yemen Conflict Escalation

Saudi Aramco's oil facilities in Jizan were the target of a fresh attack on Monday, with the extent of the damage still under evaluation. This strike occurred approximately one month after a previous attack temporarily disrupted production at the energy giant's refinery in the same industrial city, located near the Yemen border.

The Jizan complex, which includes a significant 400,000-barrel-per-day refinery, has been repeatedly targeted by Iran-backed Houthis. The recent incident coincides with renewed Houthi attacks on Saudi Arabia, following the rebels' declaration of a blockade on Saudi ports in July and subsequent drone and missile assaults on energy infrastructure.

The escalation has impacted Jizan's role as an export hub, with oil product shipments falling sharply in August. This comes amid fierce fighting along Yemen's Red Sea coast, where Houthi forces have launched a ground offensive towards the Bab al-Mandeb Strait, a critical maritime chokepoint.

These developments have added pressure to the oil market, with Brent crude trading near six-week highs. The market is unsettled by renewed US-Iran confrontations and growing risks to commercial shipping. Goldman Sachs has warned that oil prices could climb to $120 a barrel if attacks on shipping intensify.