Houthi Attacks Send Oil Prices Reeling Amid Escalating Middle East Tensions

Crude oil prices have retreated despite escalating tensions in the Middle East, where Houthi attacks on Saudi oil infrastructure continue to intensify. The attacks, which began over the weekend, have already caused significant disruptions to oil supply and have led to a shutdown of the East-West pipeline.

With traffic through the Strait of Hormuz remaining significantly lower than pre-war levels, analysts believe that oil supply will remain under pressure in the foreseeable future. This is compounded by signs that Russia and Ukraine are intensifying their attacks on key energy infrastructure.

In contrast to crude oil prices, refined products such as gasoline have seen a significant increase in price. Diesel fuel, in particular, has reached a record high, while gasoline prices have jumped to $4.4 per gallon.