Commodities
Oil Prices Soar Amid Middle Eastern Disruptions
Oil prices have surged again, driven by disruptions in the Middle East. The latest development is a drone attack on Saudi Arabia's East-West pipeline, which temporarily shut down operations.
The pipeline, capable of moving around 4 million barrels per day towards the Red Sea, has been an alternative to bypassing the Strait of Hormuz.
Meanwhile, ship traffic through the strait remains severely impacted. Over the weekend, only single-digit vessels passed through each day, compared to a 10-day average of 14 vessels before the US-Iran war began.
The Strait of Hormuz typically handles around 125 large commercial vessels per day.
As a result, Brent crude has risen 2.5% to $107.30 and WTI crude is gaining 2.7% to $102.70.