Massive Saudi Attacks Ignite Oil Facilities, Wounding Dozens as Global Prices Surge

RIYADH, Saudi Arabia – A major escalation in the Middle East conflict has rattled global energy markets. The Iran-backed Houthi militia in Yemen claimed responsibility for a "broad operation" on Tuesday that struck oil infrastructure and economic targets in four Saudi cities, including the critical Jazan oil refinery — one of the kingdom's largest, with a 400,000-barrel-per-day capacity .

Saudi authorities confirmed that the attacks wounded 73 people, including women and children, and temporarily suspended operations at several oil facilities and utilities . Images of the aftermath were not immediately available, but the scale of the assault suggests it was among the most significant against the kingdom since the U.S.-Israel war on Iran began in February .

A New Front in a Global Energy Crisis

The attack on Saudi energy infrastructure represents a dangerous expansion of the six-month-old conflict. The fighting in the Gulf has already disrupted oil flows through the Strait of Hormuz, which before the war carried about one-fifth of the world's oil supply . Now, the renewed Houthi campaign threatens to squeeze shipping through the Bab al-Mandeb strait, a critical Red Sea chokepoint .

"This is a serious escalation and a flagrant violation of the kingdom's sovereignty," warned Col. Turki al-Malki, spokesperson for the Saudi-led coalition, vowing retaliation . The Houthi military spokesman, Yahya Saree, said the attack was a response to Saudi airstrikes on Yemen, warning that "every aggression against our country and people will be met with a firm response" .

Oil Prices Hit Six-Week High

The market reaction was swift and severe. Brent crude, the global benchmark, surged more than 2% on Tuesday, trading above $99 a barrel — its highest level since July . Prices had already climbed to six-week highs last week amid tit-for-tat strikes between the U.S. and Iran on vessels in the Persian Gulf .

Goldman Sachs has warned that oil prices could rally to as much as $120 a barrel if attacks on shipping and energy infrastructure continue to escalate . The risk premium is growing as the conflict shows no signs of abating.

American Pain at the Pump

For American consumers, the global price spike is translating directly into record costs at the gas station. According to AAA, the average price of regular gas hit $4.15 a gallon** for the Labor Day weekend, nearly a dollar higher than last year and the highest ever recorded for the holiday . Diesel has reached an all-time high of **$5.85 a gallon, pushing up the cost of everything from groceries to package deliveries .

Energy Secretary Chris Wright acknowledged the pain, telling ABC’s "This Week": "Yes, they're higher today, but we're doing everything we can to push them down" . However, analysts warn that the outlook remains grim. GasBuddy petroleum analyst Patrick De Haan told CNN Business that "unless there's a change in geopolitical tensions, September through November this year will be the most expensive fall in history" .

A Global Supply Crunch

The crisis is being compounded by a global supply squeeze. U.S. refineries are operating at 98% capacity, many under harsh Texas heat, leaving little room for error . Ukrainian drone attacks on Russian refineries are further constraining diesel supplies . Meanwhile, Iranian oil exports have plummeted to roughly 220,000-255,000 barrels per day, down from peaks close to 2 million before the conflict .

The war has turned into a "test of wills" between the U.S. and Iran, with each side hoping economic pressure will force the other to yield . Iran has announced plans to create a new "maritime exclusion zone" extending from the U.S. blockade perimeter, through the Strait of Hormuz, and into the Gulf itself .

This is a developing story. The Saudi-led coalition has vowed retaliation, raising the risk of further escalation.