Red Sea Attacks and Kazakh Cuts Drive Oil Prices Higher

Oil prices are poised to rise for the week after attacks on tankers in the Red Sea sparked concerns about another critical shipping chokepoint, while Kazakhstan's oil output took a hit due to temporary production cuts. Brent futures dipped by $0.72 to $99.97 per barrel as of 0126 GMT but is still on track for a 13.5% weekly gain. West Texas Intermediate (WTI) futures fell by $0.70 to $91.49 per barrel, targeting a 10.9% rise this week.

The recent Houthi attacks on Saudi oil tankers have raised fears of another closure, this time at the Bab el-Mandeb shipping route, which controls access from the Red Sea to the Indian Ocean and is the second most important oil channel after the Strait of Hormuz. The Iran-aligned Houthis declared a naval blockade on Saudi Arabia, causing the country to divert its oil via pipeline to bypass Iran's closure of the Strait of Hormuz.

In response, US President Donald Trump vowed to 'hold Iran responsible' for any further attacks. Kazakhstan's energy ministry announced that oil companies temporarily reduced production after suspected Ukrainian drone attacks forced the country's main Black Sea export terminal to close. The Caspian Pipeline Consortium stopped receiving oil from Kazakhstan due to the attacks on tankers at the terminal, which handles about 2% of global daily crude supply.