Oil Nears $96 as Houthi Strikes Threaten Red Sea Routes

Higher fuel costs are reaching drivers and businesses as oil prices approach $96 a barrel and average U.S. gasoline prices reach $4.48 per gallon. The increases stem from renewed fighting in Yemen that now endangers two major oil-shipping corridors. Saudi Arabia reported that Houthi forces launched a ballistic missile toward Riyadh on September 19, 2026; the Saudi-led coalition stated the missile was intercepted before impact, with no casualties or damage recorded at King Khalid International Airport. Residents reported hearing an explosion and seeing smoke near the airport. The Houthis separately claimed strikes on Aramco facilities in Yanbu and other sites, assertions the group made without supporting evidence and that Aramco has not confirmed. The same day the Houthis also said they struck targets in Taif, Baysh and Farasan; Saudi officials said those attempts were thwarted. The incidents mark the first direct targeting of Riyadh since the latest escalation between the Iran-backed Houthis and Saudi-backed Yemeni government forces. Fighting has intensified along Yemen’s Red Sea coast, where Houthi fighters seized the port of Mokha and islands near the Bab el-Mandeb Strait. Control of that waterway gives the group improved visibility over tanker traffic. Saudi Arabia has historically rerouted some Gulf crude exports through the Red Sea to avoid the Strait of Hormuz; any sustained disruption to either route raises the risk of tighter global supply. Regional officials told the Associated Press that Saudi missile-interceptor stocks are running low and that Riyadh has sought additional air-defense support from France, Britain, Pakistan and Egypt. The United States has stated it has no current direct conflict with the Houthis. Oil-market analysts note that even the threat of lost capacity through these chokepoints has contributed to the recent price climb, though actual tanker diversions and volume data remain limited in public reporting.