Oil Prices Surge Amid Middle East Tensions and Pipeline Disruptions
The global energy market is experiencing turmoil as several key events unfolded in recent weeks. The US attacked five tankers carrying Iranian oil, while the Houthis seized a port on the Red Sea and disrupted Saudi Arabia's oil pipeline, which bypasses the Strait of Hormuz.
As a result, oil prices rose steadily from $95.5 to $104.6 per barrel for the benchmark North Sea Brent. This increase was likely due in part to concerns about Saudi Arabia's exports and the potential impact on global supply.
The capture of the port by the Houthis also raised concerns about the security of shipping routes, particularly through the Bab-el-Mandeb Strait. The price of diesel fuel reached a record high in both Europe and the US, with costs rising to $6 per gallon or $1.58 per liter in the US.
Analyst Tim Waterer noted that refined products, especially diesel fuel, are experiencing a 'double blow' due to restrictions on navigation in the Persian Gulf and interruptions in Russian refinery operations.