Saudi Arabia temporarily suspended several southern energy facilities after Houthi drone and missile attacks sparked fires, propelling Brent crude above ninety-nine dollars. Geopolitical escalations are worsening a severe global diesel deficit and raising winter gas shortage risks in Europe.
Global market
Yemeni Houthi strikes on southern Saudi energy facilities forced a temporary halt of several installations, driving Brent crude above $99 per barrel for the first time since July 24, while WTI climbed to $93.05. Energy market anxiety is mounting as Iran threatened the US with economic warfare and claimed to target warships. The supply outlook remains highly strained: Vitol Chief Executive Russell Hardy warned at an industry conference that the global diesel deficit will persist through winter due to a 4 million barrel per day shortage from Russia and the Middle East. Furthermore, Germany’s gas storage association INES warned of winter gas shortages as national inventories lag at a critically low 54.52%, far below historical norms.
Russia & CIS
A Ukrainian strike on a petrol station in Starodub, Bryansk region, killed a 39-year-old civilian and injured three others, leading Russian Foreign Ministry official Rodion Miroshnik to accuse Kyiv of executing an energy genocide strategy. Meanwhile, the satellite city of the Zaporizhzhia NPP, Enerhodar, remained completely without gas after Ukrainian shelling, forcing the plant’s communications director Evgeniya Yashina to optimize emergency diesel-generator performance. In other developments, Russian presidential press secretary Dmitry Peskov confirmed Russia remains ready for talks with India regarding the Kudankulam nuclear plant. Offsetting some regional shortfalls, Kuwaiti crude exports recovered to 1 million barrels per day, returning to two-thirds of their 2025 average.
Armenia
Armenian opposition lawmakers warned that Prime Minister Nikol Pashinyan’s policy threatens Armenia’s position within the EAEU, accusing the administration of replicating destructive security disputes. Regional pressure is also intensifying as Iran doubled the retail price of non-subsidized gasoline, impacting cross-border trade. Domestically, the Armenian construction sector faces a major cement deficit due to regulatory issues at its two primary producers. Despite regional transit tensions, Armenia’s retail fuel prices remain stable. Under EAEU trade frameworks, Armenia continues to import duty-free Russian gas and refined products at long-term fixed rates, shielding local consumers from the volatile prices reported by international market price assessments.