Middle East Tensions Send Crude Oil Prices Higher Amid Supply Chain Disruptions

Crude oil prices have been affected by ongoing tensions in the Middle East. The West Texas Intermediate (WTI) crude oil price dropped to $99.98 on Friday, while Brent fell to $104.3. However, analysts believe that crude oil prices will continue rising due to supply chain disruptions.

The Saudi East-West pipeline has been shut down, reducing supply in the near term. It may take weeks or months for the pipeline to reopen due to ongoing attacks in the region. Additionally, traffic through the Strait of Hormuz remains significantly lower than usual due to increased insurance costs and the risk of Iranian missiles and drones.

The Houthis have also taken control of a major port in Yemen, making it difficult for Saudi Arabia to ship its oil even when the East-West pipeline is fixed. With no signs that the US-Iran war will end soon, the supply squeeze is likely to continue.