Saudi Oil Exports Slammed Amid Drone Attacks and Yemeni Strikes

Oil prices surged on Tuesday to their highest level in four months after Saudi Arabia reported cancelling some shipments following drone attacks. The attacks forced the closure of its key export pipeline, and the country informed European customers that September deliveries were cancelled.

Oil loadings at Yanbu were suspended as a result of the pipeline closure. Meanwhile, Iran-backed Houthi militants continued to strike Saudi Arabia this week, further escalating tensions in the region.

The Strait of Hormuz remains volatile, with at least two tankers attacked since Saturday. Commodity vessel traffic through the strait fell to four on Monday from 10 a day earlier, according to Kpler data.