Oil prices surged Tuesday toward $100 a barrel following Iran-backed Houthi attacks on Saudi Arabia. Brent crude rose above $99, its highest level since late July, while West Texas Intermediate jumped to nearly $94. The attacks injured 73 civilians in southern Saudi Arabia, prompting officials to vow retaliation.

Saudi authorities reported fires and temporary disruptions at energy facilities. Analysts attribute the price surge to market recognition of prolonged Middle East conflict disrupting vital oil flows through the Strait of Hormuz and the Red Sea. Capital Economics senior economist Hamad Hussain stated participants are pricing in sustained shipping disruptions.

Since the conflict began with U.S. and Israeli strikes on Iran, the Strait of Hormuz has handled only a fraction of normal 20 percent global oil traffic. Rystad Energy's Jorge León noted volumes dipped to 8-9 million barrels daily amid renewed fighting. Despite earlier optimism, analysts now predict prices around $100 annually, with Goldman Sachs warning of $120 per barrel if attacks intensify.

A swift resolution to the Hormuz crisis remains unlikely, with energy flows potentially returning to prewar levels early next year.