Middle East Tensions Push Crude Oil Prices to Four-Month High

Crude oil prices rose to a four-month high on Tuesday, reaching $105 per barrel. The increase is attributed to escalating supply curbs from the Middle East and reduced Libyan output.

Saudi Arabia's decision to close its East-West pipeline following attacks from Iraqi territory has significantly impacted oil supplies. The strikes have halted activity in infrastructure that was allocating 7 million barrels per day of Saudi oil to the Red Sea, an alternative to halted shipments through the Persian Gulf due to the Iranian blockade on tankers.

The prolonged halt of tanker flows from the region has forced major OPEC members to cut oil production. Saudi Arabia's output recently dropped to its lowest since 1990.