Brent Crude Soars to $109 on Middle East Supply Cuts
Brent crude oil prices surged to $109 per barrel on Monday, marking a four-month high. The spike in price is attributed to mounting curbs on supply from the Middle East due to the ongoing war in Iran.
Saudi Arabia was forced to shut down its East-West pipeline following attacks from Iraqi territory, suspending activity in infrastructure that allocated 7 million barrels per day of Saudi oil to the Red Sea. This alternative route had been providing a lifeline for oil shipments amidst the Iranian blockade on GCC oil exports.
The postponement of scheduled talks between the GCC and Iran aimed at restarting oil supply from the region has further exacerbated the situation, deepening the prolonged halt of tanker flows. As a result, major oil producers have been forced to shut down operations, with Saudi output recently dropping to its lowest since 1990.