Oil Prices Soar on Saudi Pipeline Shutdown and Hormuz Traffic Slump
The price of oil rose sharply on September 15, 2026, as traders grew increasingly concerned about supply disruptions in the Middle East. WTI crude surged to $103.53 per barrel, a gain of 2.11% from Monday's settlement, while Brent crude climbed to $107.35, up 1.58%.
The continued shutdown of Saudi Arabia's East-West Pipeline has raised fears that additional supply could be stranded. The pipeline is crucial for transporting oil from the Red Sea to global markets, and its closure has already led to a significant reduction in traffic through the Strait of Hormuz, with only four ships passing through on Monday.
Analysts at Goldman Sachs warn that a prolonged shutdown combined with restricted Hormuz flows could push Brent prices above $120 per barrel. The market is currently pricing in a high risk premium for Middle East supply security, with WTI and Brent trading above $103 and $107 respectively.