Oil Prices Soar on Pipeline Closure and Hormuz Tensions

The price of oil is rising due to temporary pipeline closure and Strait of Hormuz tensions. The Brent crude barrel, used as a reference for the European market, reached $107.3 per unit, up over 1.6%. West Texas Intermediate (WTI) rose more than 1.7% to $103.1 per barrel.

The Saudi East-West pipeline, which connects oil fields in eastern Saudi Arabia with the port of Yanbu on the Red Sea coast, was temporarily closed after suffering drone attacks launched from Iraq last Saturday.

The pipeline has become a strategic alternative route for Saudi oil exports since the US-Iran conflict began and the Strait of Hormuz closure. With the pipeline still closed, tankers are facing obstacles crossing the strait, leading to Brent's four-month high.