Oil Prices Surge to Six-Week High Amid Saudi Arabia Attacks
Oil prices surged to a six-week high on Tuesday after Houthi rebels in Yemen attacked Saudi energy facilities, setting oil installations ablaze and escalating the Middle East conflict.
The attacks, which wounded over 70 people, have disrupted oil exports from the Gulf region, with Brent crude futures rising 0.7% to $97.70 a barrel and US West Texas Intermediate (WTI) crude increasing by 1.3% to $92.69.
According to Tim Waterer, chief market analyst at KCM Trade, 'The price action reflects both genuine physical tightness, tanker flows through Hormuz remain well below normal, and a clear geopolitical risk premium.' The Strait of Hormuz has seen significantly reduced oil exports since the February joint strikes by the US and Israel.
Global fuel prices remain high due to refinery disruptions in the Middle East, Russia, and other regions. In the US, diesel prices reached record highs last week, while Americans faced record-high gasoline prices over the Labor Day holiday weekend.