Yanbu Disruptions Spark $3 Oil Price Surge in Saudi Arabia

Oil prices surged $3 on Tuesday after disruptions at Saudi Arabia's Red Sea export hub of Yanbu and Riyadh's cancellations of some cargo deliveries to European customers. The moves deepened concerns that supply troubles could persist for weeks.

Gains in US West Texas Intermediate crude futures outpaced Brent, with investors flocking to US crude as an alternative due to widening supply issues in Saudi Arabia. Brent finished up $3.07, or 2.9%, at $108.75 a barrel, while WTI closed up $4.44, or 4.38%, at $105.83 a barrel.

The port of Yanbu has become critical for global supply since the US-Israeli war on Iran caused the closure of the Strait of Hormuz, which carries one-fifth of the world's oil and liquefied natural gas supplies.