Oil Prices Soar Amid Fresh Attacks on Saudi Arabia and Strait of Hormuz
Oil prices surged again on Monday, rising more than 3% to $107.61 per barrel for Brent crude and $102.53 per barrel for WTI futures. The increase comes after new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East compounded supply concerns.
The disruptions include a drone attack that temporarily shut down Saudi Arabia's East-West Pipeline, which helps the country avoid the Strait of Hormuz and re-route its exports through the Bab el-Mandeb strait. The shutdown threatens up to 4% of global oil supply.
According to industry sources, the port of Yanbu on the Red Sea has enough inventory to cover just five to seven days of exports. Analyst Janiv Shah noted that while the market still expects Saudi inventories to cushion exports in the near term, a longer disruption could change quickly.
The attacks also affected a vessel in the Strait of Hormuz, causing a fire and forcing the crew to evacuate. Iran issued a list of 77 ships it said had violated its protocols for operating in Hormuz.