Bloomberg warns oil prices may struggle with Houthi attacks

Bloomberg: Bloomberg is a global financial media and data company that operates Bloomberg News and the Bloomberg Opinion section, delivering analysis on markets, economics, and geopolitics. Its opinion platform publishes regular newsletters and columns by market experts on timely developments. The news originates from Bloomberg Opinion, highlighting risks to oil prices from potential Houthi escalation in the context of U.S. policy. John Authers: John Authers is a senior editor for markets and Bloomberg Opinion columnist who writes regularly on equities, bonds, earnings, and macroeconomic trends. A former Financial Times chief markets commentator, he provides in-depth market commentary often tied to global events. Here, Authers co-writes the opinion piece warning that oil prices have limited capacity to absorb further disruptions from Houthi attacks linked to broader Middle East dynamics under the Trump administration. Richard Abbey: Richard Abbey is a data reporter at Bloomberg who contributes to the Bloomberg Opinion Points of Return newsletter, focusing on market indicators and credit conditions. He frequently co-authors pieces with John Authers analyzing signals from financial markets amid economic and geopolitical developments. In this news, Abbey helps frame the analysis of oil price vulnerabilities to external shocks like Houthi actions. • Houthi attacks have expanded from maritime threats to Saudi energy infrastructure and export routes. • Brent recently rose above $100 after attacks on Saudi sites, showing immediate geopolitical risk repricing. • The Strait of Hormuz remains heavily disrupted, while the Red Sea is an increasingly important alternative route. • Saudi Arabia’s East-West Pipeline and Yanbu export hub have faced attacks or operational constraints. • EIA expects Middle East shut-in production to average 4.5 million barrels per day in fourth-quarter 2026. • A further attack on tankers, pipelines, or export facilities could amplify supply fears and volatility; diplomatic progress could reverse the risk premium.