Middle East Tensions Send Crude Oil Prices Reeling Amid Supply Risks

Crude oil prices have retreated in recent days despite escalating tensions in the Middle East. The price of Brent crude, the global benchmark, dropped to $103.90 from its monthly high of $109.96, while West Texas Intermediate (WTI) fell to $95.46, roughly 10% below its peak for the month.

The crisis in the region has intensified as Ansar Allah, popularly known as Houthis, launched major attacks against Saudi Arabia's oil infrastructure. The East-West pipeline has been shut down, and analysts believe it may take months to repair. Even when it is operational again, the pipeline will be at risk of further attacks by Houthi, Iran, and Iraqi groups.

Traffic through the Strait of Hormuz remains significantly lower than before the war started in February, adding to the supply pressure. The situation is compounded by Russia and Ukraine's intensified attacks on key energy infrastructure.