"I think it was the biggest win of the year," said Parsons. "The crowd was unbelievable tonight. That was the loudest, by far, that I have ever heard them. I think that really played a factor and this is a big win we need to build on going forward."
Kevin Durant dropped in a game-high 33 points for the Thunder, but missed three potential game-winning shots in the closing seconds as Oklahoma City had its two-game win streak snapped.
Russell Westbrook had 26 points, eight rebounds and four assists in a losing effort.
Houston held a 75-73 advantage entering the fourth quarter after a back-and- forth third that included four ties and six lead changes.
That trend continued in the fourth, as James Harden opened the final frame with a three-pointer to put the Thunder on top before a pair of foul shots by Jordan Hill followed by a Goran Dragic three-pointer gave the Rockets an 80-76 lead.
Oklahoma City stayed within two possessions over the next three minutes until a 9-1 swing by the Thunder put them ahead, 91-88, just past the midpoint of the fourth.
The Rockets responded with back-to-back baskets by Lowry and Scola to retake the lead, but a Durant dunk and a Westbrook jumper put the Thunder back on top, 95-92.
The Thunder, though, would not score again.
A Lowry layup closed the gap to one with a minute remaining in the game, and after a Durant miss, Martin was fouled and sank both free throws for a 96-95 lead with 23.6 seconds left in the game.
On the Thunder's next possession, Durant attempted a three that rimmed out, but the rebound deflected out of bounds off a Houston player, keeping possession with Oklahoma City.
Durant's quick jumper off the inbounds pass was no good. However, Harden grabbed the rebound and the Rockets decided to use a foul as they had one left to give.
Durant was again given the ball for the potential game-winner, but his running layup rolled off the rim and Westbrook's attempted tip-in was too strong, sealing the win for Houston.
"I got where I wanted to get. I missed the shots. That's the difference," Durant said. "We got unbelievable looks. Better looks than we usually get. I missed a wide open [three pointer], a wide open curled jump shot and another floater shot going to the rim. Things like that happen. We have to move on and can't beat ourselves up for it."
The Rockets jumped out to an early 6-0 lead as the Thunder missed their first seven attempts from the floor.
A Durant jumper followed by a Westbrook layup made it a two-point game, but Houston responded with a 14-2 run to take a 20-6 lead as Oklahoma City continued to struggle from the floor.
Houston held its double-digit lead for the remainder of the first quarter, taking a 29-13 advantage into the second as the Thunder went just 6-for-24 from the field in the opening frame.
But Oklahoma City turned it around in the second quarter, following Patrick Patterson's opening jumper with an 18-4 run to close the gap to 35-31 past the midpoint of the second.
Houston stretched its lead back to eight on back-to-back field goals by Lowry and Scola before the Thunder closed out the half with a 13-6 swing, trailing by a score of 45-44 at the break.
Oklahoma City had won four straight and six of seven overall against Houston entering the game...The Rockets improved to 11-3 at home this season, while the Thunder fell to 12-6 on the road...Harden finished with 17 points for the Thunder...Houston recorded 26 points off 22 Thunder turnovers...The Rockets gave the ball away 14 times, resulting in 15 Oklahoma City points.