Saudi Pipeline Closure Drives Brent Crude to $108.34

The price of Brent crude oil rose to $108.34 per barrel on September 16, up $1.77 from the previous day and more than $40 above its level at the same point last year.

This increase is largely due to a single supply shock: the closure of Saudi Arabia's East-West pipeline, which was damaged by Houthi forces, forcing a halt to exports that would normally flow through that route.

The broader context is an escalating US-Iran conflict that has made tanker transit in the region hazardous, adding a risk premium to every barrel moving through contested waters. Analysts project that each additional month of supply disruption at current severity could add $7 to $8 per barrel to Brent prices.