Oil Prices Soar on Saudi Infrastructure Strikes and Hormuz Tensions
Oil prices surged to a 16-week high after strikes on Saudi energy infrastructure and reduced ship traffic through the Strait of Hormuz heightened concerns about supply. Brent crude jumped 4.5% to $109.29 per barrel, with traders focusing more on the issue of oil flow out of the Persian Gulf than current demand.
The key concern is the status of Saudi Arabia's East-West pipeline, which helps the kingdom export crude without using Hormuz. An attack knocked it out, and analysts warned that storage at Yanbu in the Red Sea may only cover several days of exports.
Ship-tracking data showed a significant decrease in transits through Hormuz over the weekend, with just single-digit numbers compared to a recent average of 14 per day. Iran also reported that dozens of vessels had breached its operating rules.