---
title: "Oil prices surge as Saudi Arabia intercepts Houthi missile attack"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-09-25T06:14:10+00:00"
modified: "2026-09-25T06:14:10+00:00"
date: 2026-09-25
canonical: "https://stockmark.it/oil-jumps-after-saudi-thwarts-missile-attack/"
category: "Business"
categories: ["Business", "Oil & Gas", "Oil Producer"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/oil-prices-surge-as-saudi-arabia-intercepts-houthi-missile.png?fit=1536%2C1024&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Oil prices surge as Saudi Arabia intercepts Houthi missile attack

**Published:** September 25, 2026
**Author:** Stockmark.IT Website
**Categories:** Business, Oil & Gas, Oil Producer
**Featured image:** ![Oil prices surge as Saudi Arabia intercepts Houthi missile attack](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/oil-prices-surge-as-saudi-arabia-intercepts-houthi-missile.png?fit=1536%2C1024&quality=80&ssl=1)

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Brent crude prices climbed by four per cent on Thursday to reach $107.90 a barrel following a military intervention by Saudi Arabia. The kingdom’s forces successfully intercepted six ballistic missiles launched by Yemen’s Iran-backed Houthi militia. The projectiles were aimed at the Taif and Yanbu regions along the Red Sea, which serve as the primary alternative export route for Saudi crude oil. The successful counterstrike has raised expectations that the country can maintain the flow of oil despite the escalating regional tensions.

The incident occurred against a backdrop of significant volatility in global financial markets. US long-term borrowing costs reached their highest levels since 2004 as a widespread sell-off in bond markets intensified. Yields on 30-year US Treasury bonds rose to 5.43 per cent, while the yield on 30-year UK gilts climbed to 5.87 per cent, approaching its peak since 1998. Similarly, Japan’s 10-year bond yield surged to 3.08 per cent, marking its highest point since 1996. These increases indicate that the global bond market rout is accelerating, driven by stronger-than-expected US economic growth and elevated oil prices that are fuelling inflation concerns.

In the United States, private sector activity unexpectedly jumped to a five-year high in September. Market participants are now pricing in three interest rate increases by the Federal Reserve by April next year to combat inflation. Money markets suggest a 70 per cent probability that the central bank will follow its recent rate hike with a second increase in October. This outlook contrasts sharply with the situation in Britain, where economists warn that further rate rises could damage an already fragile job market and an economy that is losing momentum.

Sterling fell to its lowest level against the US dollar since late June, trading at $1.32, down from $1.37 the previous month. The decline reflects growing expectations that the Federal Reserve will need to raise interest rates more aggressively. This is in contrast to the Bank of England, where a deputy governor warned that it is increasingly likely rates will rise if oil prices continue to exert inflationary pressure. Clare Lombardelli stated that businesses are more likely to pass on higher costs to consumers if energy prices remain elevated, potentially leading to second-round inflationary effects.

Equity markets showed mixed reactions to the rising bond yields and oil prices. The FTSE 100 index closed 0.24 per cent lower, showing resilience after leading for much of the day. Strength in energy, consumer non-cyclical, healthcare, real estate, and utility stocks helped offset weakness in industrials, miners, consumer cyclicals, and financials. In the US, the tech-heavy Nasdaq led the selloff, sliding 0.8 per cent, while the S&P 500 fell 0.4 per cent and the Dow Jones Industrial Average dropped 0.2 per cent. The decline was attributed to surging bond yields and escalating Middle East tensions, with the 10-year Treasury yield jumping to a 19-year high.

Separately, Oracle shares fell five per cent after the company issued a force majeure notice to the developer of its New Mexico AI data centre. The notice allows Oracle to delay payments to Blue Owl Capital if the facility, known as Project Jupiter, fails to open by 2028. The project faces local opposition, environmental hurdles, and investor anxiety over $18 billion in project debt. Despite this, Oracle maintains that the project remains on schedule and that long-term financial commitments are unchanged.

The US Treasury is set to buy back up to $6 billion in long-term US bonds, the second in a series of scaled-up operations announced in August. While these buybacks are designed to suppress rising borrowing costs, yields have continued to climb. Analysts note that the bond market is too large for such measures to have a significant impact on their own. Meanwhile, the European Union has warned that a potential US export ban on diesel would negatively impact both Brussels and Washington, with European diesel prices jumping by as much as seven per cent following reports of such plans.

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