Iran, Houthis Deliver Big Blow In Gulf --- Oil prices soar after attacks against tanker near Qatar and in Saudi capital

“DUBAI -- Iran and its Houthi allies in Yemen delivered a one-two punch against Persian Gulf oil producers in separate attacks on Wednesday night and Thursday morning that sent oil prices sharply higher and further shattered the sense of security in Saudi Arabia's capital city.

 

Just last week, Iran appeared to have its back against the wall in its war with the U.S., its ports blockaded and its leverage over the Strait of Hormuz slipping. Now, Tehran is trying to regain the upper hand.

 

An oil-and-chemical tanker near Qatar was struck by several projectiles late Wednesday, causing casualties, according to maritime-intelligence firm Vanguard and the U.K. Maritime Trade Operations agency.

 

No one claimed responsibility for the attack, but officials in the region said Iran was likely behind it.

 

The ship attack was followed by Houthi strikes on Thursday in Riyadh, damaging multiple aircraft at the international airport and forcing residents to take cover in the third straight day of attacks on the city.

 

By increasing attacks on shipping, Tehran is seeking to break the stalemate in the strait and increase pressure on Washington to reach a diplomatic settlement, some analysts said.

 

The limited military moves could raise oil prices and pressure President Trump before the midterm election, while stopping short of another full-scale military confrontation.

 

U.S. officials believe deferring a decision about whether to resume military operations against Iran will increase pressure on Tehran to make major concessions, including on its nuclear program.

 

"Iran is clearly raising the pressure, while Washington is hardening both its rhetoric and military posture, but neither side has yet abandoned diplomacy," said Andreas Krieg, a senior lecturer at the School of Security Studies at King's College London. "This is precisely what makes the moment so dangerous. Both sides are trying to improve their bargaining position while sitting only one serious incident away from a much-wider war."

 

The clashes underscored the region's volatility and the difficulty that Trump, a Republican, faces keeping a lid on its conflicts at least until after midterm elections in the U.S. next month.

 

Trump said on Thursday that the U.S. won't attack Iran before the election, citing "productive" talks with Tehran.

 

"We will not be attacking Iran at any time prior to the Midterm Elections," Trump wrote in a Truth Social post.

 

He has also declined Saudi requests for direct U.S. military assistance against the Houthis, though the Pentagon is providing intelligence and other support.

 

Oil prices rose despite the president's comments, with Brent crude, the international benchmark, settling at $104.27 a barrel, up 4.1%, and WTI, the U.S. benchmark, up 4.1% to $91.87 a barrel. Surging energy prices weighed on stocks and Treasury yields.

 

Oil producers have increasingly relied on the U.S.-protected tanker movements, ship-to-ship transfers outside Hormuz and pipelines that bypass the strait entirely.

 

Saudi Arabia has also resumed exports from both its Gulf and Red Sea coasts after repairing part of the damage to its East-West pipeline following an attack in September.

 

The Houthis are armed and trained by Tehran, but their escalating attacks against Saudi cities and oil facilities indicate they are less cautious than their Iranian backers.

 

The Houthis stepped up strikes inside the kingdom after Riyadh launched a campaign to retake Houthi-held territory in Yemen that threatened Saudi ship traffic through the Bab al-Mandeb, the heavily traveled gateway to the Red Sea.

 

In response to the Saudi-led counteroffensive, long-range Houthi strikes have escalated into a daily occurrence in Riyadh, more than 500 miles north of the fighting in Yemen.

 

The Houthis said on Thursday that Saudi aircraft had carried out several airstrikes across Houthi-controlled areas, including strikes targeting telecommunications networks in Yemen's capital San'a, Hodeidah Airport and the city of Ibb, causing several casualties.

 

"The fires targeting Saudi targets have not stopped, while warnings and strikes continue to escalate," Houthi leader Abdul Malik al-Houthi said on Thursday in a televised speech. "Saudi Arabia's regime cannot achieve its objectives" of controlling Yemen, he said.

 

At least two airplanes were struck in the latest attack on Riyadh's King Khalid International Airport on Thursday. Falling debris from an intercepted ballistic missile hit a kindergarten and a medical-clinic complex, while workers in the city's financial district, students at some international schools and diplomats were ordered to evacuate or take shelter.

 

Residents across the city said they heard at least five huge booms Thursday morning but received no alerts or warnings on their phones from authorities.

 

An empty commercial plane at Riyadh airport's Terminal 4, which handles domestic flights, was hit in the afternoon and dozens of incoming flights were canceled or diverted.

 

Foreign students at several international schools were shaken after spending part of the afternoon sheltering in place in windowless rooms, said a mother who spoke to parents at several of the schools.

 

The Houthis' military spokesman, Yahya Sare'e, said in separate statements that the airport had been hit by a ballistic missile and by two cruise missiles.

 

The Saudi-led military coalition said it had shot down two ballistic missiles on Thursday.

 

It was at least the third time the airport had been targeted since Tuesday, when Houthi officials vowed to respond to airstrikes and missile attacks by the Saudi-led coalition against their forces in Yemen.

 

The Houthis have repeatedly warned "all international airlines using Saudi airspace" to halt their flights, except those over the Muslim holy cities of Mecca and Medina.

 

The European Union Aviation Safety Agency has warned airlines that "recurrent missile and drone attacks, together with the activation of air-defense systems, create an increased risk of misidentification of civil aircraft."

 

Saudi officials have been putting out new warnings to the public since Tuesday that filming and sharing images of drone and missile attacks, or interceptions, could bring legal charges.” [1]

 

1. Iran, Houthis Deliver Big Blow In Gulf --- Oil prices soar after attacks against tanker near Qatar and in Saudi capital. Cloud, David S; Said, Summer; al-Batati, Saleh.  Wall Street Journal, Eastern edition; New York, N.Y.. 09 Oct 2026: A1.