Global Tensions Threaten Oil Flow, Majors Post Windfall Profits

Yemen's Houthi rebels claimed an attack on a Saudi oil tanker in the Red Sea late Tuesday, raising fresh concerns for global oil shipments, according to OilPrice.com. The group's military spokesman, Yahya Saree, stated the Saudi-flagged vessel NCC GHAZAL was targeted with ballistic missiles for violating a maritime navigation ban. Maritime intelligence firm Windward reported the tanker exhibited high-risk behavior prior to the attack, including a 7-day AIS blackout off the Yemen coast.

In response to the heightened threat in the Bab el-Mandeb Strait, Saudi Arabia is re-routing crude exports, OilPrice.com reported. More than half a dozen empty supertankers are en route to Egypt's Sidi Kerir port to pick up Saudi crude transported via the SUMED pipeline from Ain Sukhna, bypassing the southern Red Sea chokepoint.

The regional instability comes as Italian energy major Eni reported a massive jump in second-quarter profit, driven by higher oil and gas prices. Eni's adjusted net profit more than doubled year-over-year to $2.65 billion, beating consensus estimates, OilPrice.com reported. The company's average realized price for liquids surged 54% to $96.50 per barrel.

Eni's total production averaged 1.79 million boe/d for the quarter, up 7% year-over-year, fueled by project ramp-ups in Norway, Congo, Mexico, and Angola. As a result of strong performance, Eni increased its 2026 share buyback program by $683 million to a total of $3.9 billion and raised its full-year production growth guidance to around 5%.

Separately, a U.S.-Saudi consortium plans to build a new $5 billion refinery in the Persian Gulf region, outside the Strait of Hormuz, OilPrice.com reported. The group, MERA Oil, includes Texas-based MWG Group and Saudi AHQ Group's PWS. The planned facility would have a capacity of 200,000 barrels per day and include a deepwater port and storage facilities.

The refining sector faces ongoing supply shocks. Saudi Aramco's 400,000-bpd Jazan refinery remains shut down after a Houthi strike last Saturday, with repairs expected to last until mid-August, according to OilPrice.com. This has aggravated tight refined fuel supplies, contributing to record-high crack spreads.