Crude oil prices surge past $115 after Houthi missile strike on Saudi refinery
Synopsis
A reported Houthi missile strike on Saudi Arabia's largest oil refinery — processing 5.5 lakh barrels a day — sent Brent crude surging past $115 on Wednesday, erasing the previous day's diplomatic-optimism dip in a single session. With OPEC+ already underproducing and the Strait of Hormuz under pressure, the margin for error in global energy markets is razor-thin.
Key Takeaways
Brent crude rose $1.55 to $115.43 a barrel on 28 October 2026 after a reported Houthi missile strike on Saudi Arabia's largest oil refinery.
WTI crude gained 1.43% to $101.32 a barrel , reversing the previous session's $2 a barrel decline.
The targeted refinery has a reported capacity of 5.5 lakh barrels per day ; Saudi authorities have not confirmed the strike.
Diplomatic talks in Tehran involving Saudi Arabia , Turkey , Pakistan , and Iran continued, with all four sides agreeing to sustain dialogue on peace and security.
OPEC+ is expected to keep December output targets unchanged at its Sunday meeting, while core producers including Saudi Arabia , Russia , and Iraq remain below their output quotas.
Brent had already hit a high of $117 a barrel last week after Iranian attacks on tankers near the Strait of Hormuz , which handles roughly 20% of global energy shipments.
Brent crude futures jumped $1.55, or 1.36%, to $115.43 a barrel on Wednesday, 28 October, after Yemen's Iran-aligned Houthi militants reportedly struck Saudi Arabia's largest oil refinery with a missile, reigniting fears of a supply disruption in the volatile Middle East. US West Texas Intermediate (WTI) crude also rose 1.43% to $101.32 a barrel, reversing much of the previous session's losses.
The Strike and Its Immediate Impact
The Houthis claimed responsibility for targeting the refinery, which processes an estimated 5.5 lakh barrels per day. Saudi authorities have not officially confirmed the strike. The attack revived concerns over crude supply risks that had temporarily eased following recent diplomatic overtures aimed at calming Middle East tensions.
The price surge came just a day after oil fell nearly $2 a barrel when diplomatic talks raised hopes of de-escalation. That optimism was swiftly undone by the reported strike.
Diplomatic Talks in Tehran
A high-level diplomatic meeting in Tehran saw representatives from Saudi Arabia, Turkey, and Pakistan holding talks with Iranian officials on defusing regional tensions, according to reports. All four countries reportedly agreed to continue dialogue to strengthen cooperation on peace and security. However, the Houthi strike — even as diplomats convened — underscores how fragile any de-escalation remains.
OPEC+ Output and the Broader Supply Picture
Adding to the market's unease, OPEC+ producers are widely expected to leave December output targets unchanged at a meeting scheduled for Sunday, according to multiple reports. Output from most of the group's seven core producers — including Saudi Arabia, Russia, and Iraq — is already running below assigned targets, leaving little spare capacity buffer.
Saudi Arabia remains the world's second-largest crude producer and its biggest oil exporter, making any disruption to its refining infrastructure a global price event.
Strait of Hormuz Under Pressure
The ongoing West Asian conflict has placed mounting pressure on the Strait of Hormuz, a critical maritime chokepoint that reportedly handled approximately 20% of global energy shipments before hostilities intensified in February. Iranian attacks on oil tankers near the strait pushed Brent past $117 a barrel last week — its highest level since April — before the benchmark briefly retested that level on Monday and settled lower.
What to Watch Next
Energy markets remain on edge as the combination of a contested refinery strike, below-target OPEC+ production, and a diplomatically fragile Middle East keeps upside risks firmly in play. A confirmed damage report from Saudi authorities or any escalation at the Strait of Hormuz could push Brent toward its recent $117 high once more. Simultaneously, the outcome of the Tehran diplomatic talks and the Sunday OPEC+ decision will be closely watched for any signals that could temper or amplify price volatility.
Point of View
Signalling just how risk-premium-laden oil prices already are. The deeper structural problem is OPEC+ underproduction: with core members already falling short of quotas, there is no meaningful spare capacity backstop if Saudi refining output is genuinely disrupted. Markets are effectively pricing geopolitical risk into every barrel, and the Tehran diplomatic track — however earnest — cannot neutralise Houthi operational capacity on its own. India, which imports over 85% of its crude needs, should be watching the Strait of Hormuz numbers with particular urgency.
NationPress
28 Oct 2026
Frequently Asked Questions
Why did crude oil prices rise on 28 October 2026?
Crude oil prices rose after Yemen's Iran-aligned Houthi militants reportedly struck Saudi Arabia's largest oil refinery with a missile, reviving fears of a supply disruption. Brent crude gained $1.55 to $115.43 a barrel, while WTI rose 1.43% to $101.32 a barrel.
Has Saudi Arabia confirmed the refinery strike?
No. Saudi authorities had not confirmed the reported missile strike on the 5.5-lakh-barrel-per-day facility as of Wednesday. The Houthis claimed responsibility, but the extent of any damage remains unverified.
What is the Strait of Hormuz and why does it matter for oil prices?
The Strait of Hormuz is a critical maritime chokepoint between the Persian Gulf and the Arabian Sea, reportedly handling around 20% of global energy shipments before hostilities escalated in February. Any disruption there can trigger sharp moves in global crude prices, as seen when Iranian attacks on tankers pushed Brent above $117 a barrel last week.
What is OPEC+ expected to decide at its Sunday meeting?
OPEC+ producers are widely expected to keep December output targets unchanged at the Sunday meeting, according to multiple reports. Core members including Saudi Arabia, Russia, and Iraq are already producing below their assigned quotas, limiting the group's ability to offset any supply shock.
What diplomatic efforts are under way to calm Middle East tensions?
A diplomatic meeting in Tehran brought together representatives from Saudi Arabia, Turkey, Pakistan, and Iran to discuss de-escalating regional tensions. All four countries reportedly agreed to continue dialogue aimed at strengthening cooperation on peace and security, though the reported Houthi strike occurred even as talks were ongoing.
