Oil Prices Soar as Saudi Pipeline Closure Fears Persist

Oil prices surged nearly 5% on Tuesday as concerns over supply disruptions persisted following attacks on Saudi Arabian energy infrastructure. The East-West pipeline, a crucial route for oil exports to bypass the Strait of Hormuz, remains closed after Friday's attacks.

The average price of a gallon of diesel in the U.S. hit a record high of $6.27, while California reached $8.21 per gallon on Tuesday. Iran-backed Houthi forces launched fresh attacks on Saudi Arabia, fueling concerns that the Middle East conflict could widen and further disrupt global oil supplies.

Tim Waterer, chief market analyst at KCM Trade, noted that 'oil traders are treating every fresh attack or infrastructure hit as an incremental supply risk, while staying highly sensitive to any sign that the East-West pipeline or Hormuz flows could normalize.'