Oil Prices Surge Amid Strikes on Saudi Infrastructure and Ship Attacks
Oil prices have surged due to recent strikes on Saudi energy infrastructure and attacks on ships in the Middle East, according to Reuters. The Brent crude price has risen to around $108 a barrel, while US WTI is near $102. The jump of about 3% on the session comes after strikes forced a temporary shutdown of Saudi Arabia's East-West pipeline.
Saudi and industry sources have warned that the disruption could threaten up to 4% of global oil supply if it lasts beyond available storage. Analysts, including Janiv Shah of Rystad, note that inventories can only cover about five to seven days of exports from the affected Red Sea port of Yanbu.
The price gains are also linked to attacks on vessels in the Strait of Hormuz and renewed regional tensions, which have pushed Brent above $100 earlier this month. The market reaction has been driven by supply worries, with several trading updates showing Brent and WTI climbing after the incidents.