Middle East Conflict Drives Oil Prices Above $100 Per Barrel Amid Disrupted Supplies

The conflict in the Middle East has escalated, with the Strait of Hormuz, Red Sea, and parts of Saudi Arabia facing growing military threats.

The Yemen's Iran-aligned Houthi group launched missiles and drones towards a military air base in southern Saudi Arabia, shortly after the Saudi Arabia's East-West oil pipeline was hit, disrupting an important alternative route for transporting crude.

The East-West pipeline has played a key role in reducing pressure on global oil markets by allowing Saudi crude to reach the Red Sea and avoid the Strait of Hormuz. With the pipeline disrupted and shipping through Hormuz facing continued attacks, concerns over the availability of crude have increased.

The Houthis have also expanded their presence in Yemen, including taking control of Perim Island near the entrance to the Red Sea. The developments have added to fears about the security of another major international shipping route.