Houthi Strike Sparks Oil Price Surge Amid Saudi Pipeline Disruption Fears

Satellite imagery has sparked unverified reports of a Houthi strike on Saudi Arabia's East-West pipeline, one of its key alternatives to the Strait of Hormuz. The pipeline, also known as Petroline, carries crude oil roughly 1,200 kilometres from the Eastern Province to the Red Sea port of Yanbu, with a stated capacity of up to seven million barrels per day.

The US 10-year Treasury yield rose above 4.97%, its highest level since October 2023, as markets digested the potential disruption to Saudi export capacity. Gold prices slipped toward $4,300 amid rising bond yields and surging oil prices.

Data released by Japan showed a corporate goods price index rise of 7.6% year on year in August, exceeding forecasts and reinforcing expectations that the Bank of Japan will raise its policy rate to 1.25% at next week's meeting.