Yemen’s Houthi forces have attacked Saudi Aramco facilities in Riyadh and Khurais with missiles and drones. Here is why it matters for oil prices.

Brent crude surged above 103 dollars a barrel on the news. The attacks revived fears about supply through the Gulf, a region that moves a huge share of the world’s crude. Any disruption there ripples through global markets within hours.

Diesel markets are even tighter. United States diesel hit a record 6.50 dollars a gallon, which is why the G7 agreed on October 2 to release 100 million barrels of crude and diesel from emergency reserves over four months.

For importing countries including India, costlier crude means bigger fuel import bills and pressure on inflation. When crude rises, governments and central banks watch closely.

The shock may ease if the G7 release calms markets. But as long as Gulf facilities are targets, the risk premium stays.