Brent crude oil prices surged to their highest levels in over five months due to escalating tensions in the Middle East, particularly following Houthi attacks in Saudi Arabia. Brent crude futures climbed 0.7% to trade at $113.96 per barrel, briefly reaching $114.72, while US West Texas Intermediate (WTI) crude rose 1.1% to $100.57 per barrel.
The rise in oil prices is being driven by market concerns over potential supply disruptions. Reports have surfaced that Saudi Aramco, the state oil giant, ordered the evacuation of its headquarters in Dhahran amid intensified fighting involving Saudi Arabia and Yemen-based Houthi forces. Analysts have warned that continued attacks could lead to significant disruptions in oil shipments, exacerbating existing supply shortages.
The security of critical shipping routes is also under scrutiny, particularly the Bab el-Mandeb Strait, a strategic passage connecting the Red Sea with the Gulf of Aden. Prolonged disruptions in this area could delay energy deliveries and sustain elevated oil prices.
In addition to tensions in the Middle East, supply concerns have been compounded by a pipeline valve shutdown in Libya. This incident has reduced production at the Hamada and Tahara oilfields, impacting output to the Zawiya port.
Meanwhile, a Malta-flagged tanker carrying 40,000 metric tons of Russian diesel is en route to New York. This shipment comes as Russia resumes diesel exports to international markets, including the United States, in efforts to mitigate fuel-price pressures.
Oil markets are expected to remain highly sensitive to developments in the Middle East, as well as any changes in shipping routes and the time needed to restore affected energy operations.