Houthis Attack Aramco Facilities in Saudi Arabia, Tensions Rise in the Middle East
Iran-backed Houthis in Yemen launched ballistic missile and drone attacks on facilities belonging to national oil company Aramco in Saudi Arabia's capital Riyadh and the Yanbu region. Houthi military spokesman Yahya Saree claimed the attacks were retaliation for airstrikes on Yemen. Saree accused Saudi Arabia of conducting 732 airstrikes on Yemen. Fires were reported in the targeted areas.
Following the attacks, U.S. President Donald Trump cut short his weekend schedule at Camp David and returned to the White House. U.S. media reported that the Washington administration is evaluating possible options against Houthi targets in Yemen, but the White House has made no official statement. The U.S. State Department and its embassies in Iraq, Lebanon, Kuwait, and Bahrain warned that tensions in the Middle East could escalate unexpectedly.
Turkish Foreign Minister Hakan Fidan stated that serious attacks were carried out against Saudi Arabia's territorial integrity and infrastructure, reminding that member countries have responsibilities under the Mecca Alliance. Fidan said the alliance is in good shape and that military support could be provided in certain technical areas if Saudi Arabia needs it.
In an interview with Fox News, U.S. President Trump said he is at a decision point regarding Iran. Listing the options on the table as 'completely destroying Iran, letting it rot economically, or making a deal,' Trump stated that if Tehran does not back down, major steps will be taken soon. Trump also added that he is ready to meet with Iranian President Pezeshkian at the UN meeting.
Iranian Parliament Speaker Mohammad Bagher Qalibaf announced that the Strait of Hormuz will not be opened unless his country's conditions are met and the U.S. fulfills its commitments. According to IRNA, Qalibaf said they are adopting a rational and non-negotiable stance in diplomacy, and that unless conditions are met, they will not return to the situation before the negotiations.
Not investment advice.
The Houthi attack on Saudi Aramco facilities could support copper prices in the short term by increasing the geopolitical risk premium in the Middle East. However, since copper does not carry the same direct supply disruption risk as oil, the impact may be limited. Technical indicators are already strong: RSI at 69.7 is near overbought territory, MACD is above its signal line, and the price is above the SMA20/SMA50. While this supports upward momentum, there is a risk of profit-taking due to overbought conditions. In the 1-3 day outlook, a moderate upward bias is expected, but the news impact is limited and volatility may increase.
The Houthi attack on Saudi Aramco facilities could heighten the risk of supply disruptions in the Middle East, creating a geopolitical premium for Brent crude. However, the price has fallen 6.25% in the last 24 hours and the RSI is at 29.7, in oversold territory; this could support short-term rebound buying. The MACD is negative and slightly below the signal line, indicating a weak trend. Trading below the SMA20 and SMA50 shows the technical outlook is still impaired. The impact of the news may be limited; if supply disruptions are not confirmed, the rally may not be sustained.
