Noida, Sep 14 (APAC Media): Crude oil prices climbed sharply early Monday as fresh Houthi attacks on Saudi Arabia and new strikes in the Strait of Hormuz heightened fears of disruptions to regional supplies.
The delay of planned talks between Iran and other Persian Gulf powers over the strategic waterway added to market uncertainty, strengthening oil’s risk premium and keeping crude prices near their annual highs.
Brent crude futures climbed as much as 2.40% to $107.41 a barrel on Monday before paring some gains to trade at $107.37 a barrel by 10:10 a.m. IST.
West Texas Intermediate (WTI) crude futures also advanced, rising 2.54% to $102.34 a barrel.
The gains came amid heightened tensions in the Middle East after Yemen’s Houthi group carried out further attacks on Saudi targets over the weekend, stoking concerns over potential disruptions to oil supplies from the region.
The Iran-aligned Houthis have strengthened their position to launch attacks in the Bab el-Mandeb Strait and against key Saudi energy infrastructure, raising fresh concerns over oil supplies from the region.
The latest developments follow a series of Houthi attacks last week targeting major Saudi facilities, including an Aramco refinery and fuel terminal, as well as fuel plants, airports and vessels operating near the Bab el-Mandeb.
US Senator Chris Murphy warned that a war with Iran could strengthen hardliners in Tehran. In a post on X, the Democratic senator said another predictable consequence of the conflict would be the “empowerment of radical hardliners” seeking further war and a nuclear weapon.
The escalation has put another important oil supply route in the region at risk. A significant portion of Saudi Arabia’s crude shipments that would normally pass through the Strait of Hormuz had been rerouted through the Bab el-Mandeb.
Saudi Arabia has also shut a key East-West oil pipeline following further Houthi attacks. The group reportedly struck additional targets in the kingdom over the weekend and carried out more attacks on shipping in the Bab el-Mandeb.
“Riyadh has now lost the option to use Western exports if the Strait of Hormuz deteriorates again,” analysts said in a note, adding that the development was likely to put further upward pressure on oil prices this week.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
Also Read:
