Middle East Conflict Sends Oil Prices Soaring Amid Fears of Uncontrolled Demand Destruction

The Strait of Hormuz and Saudi Arabia's Red Sea are now active war zones after Yemen's Iran-aligned Houthis fired dozens of missiles and drones at a military air base in Khamis Mushait overnight.

This escalation follows an attack on Thursday that knocked out the Saudis' East-West pipeline, which played a crucial role in easing global concerns about an impending oil shortage.

The Houthis have also advanced rapidly in Yemen, capturing territory including Perim Island at the mouth of the Red Sea, pushing oil prices above $US100 per barrel late last week.

Analysts warn that uncontrolled demand destruction is looming, with Brent crude trading at $US107 per barrel and US West Texas Intermediate (WTI) crude at $US103 per barrel.