Yemen Conflict Keeps Oil Prices Elevated as Strait of Hormuz Shipments Rebound

Saudi Arabia said on Wednesday that its air defenses intercepted and destroyed a Houthi drone before it entered Mecca's airspace. According to Sina Finance, the Iran-backed Houthis denied the claim, calling it a "clichéd lie," while the Organization of Islamic Cooperation condemned the attack as a "heinous act" and accused the Houthis of attacking the Mecca and Medina areas. Oil prices eased on Wednesday, but Brent crude and U.S. West Texas Intermediate futures were still hovering near four-month highs at $107.8 and $104.6 per barrel, respectively. According to Sina Finance, Commodity Context founder and oil market analyst Rory Johnston said the seven-day average of oil shipments through the Strait of Hormuz rose to nearly 12 million barrels per day as of Sunday, the highest level since the June-July rebound after the memorandum of understanding was signed.