Oil Prices Edge Higher as Saudi Attacks and Pipeline Outage Raise Supply Fears
Oil settled about 1% up after new Houthi strikes on Saudi facilities and a pipeline hit sparked concerns over global supply.
Oil markets closed higher on Monday, with Brent rising $1.07 to $105.68 per barrel and WTI climbing $1.34 to $101.39, after the Houthis launched missiles and drones at a Saudi airbase in Khamis Mushait and were blamed for disabling the kingdom's east-west pipeline. The pipeline outage threatens roughly 4% of global oil supply and has forced the Red Sea port of Yanbu to rely on limited storage for several days of exports.
Ship transits through the Strait of Hormuz dropped to single digits, well below the recent 10-day average of 14 vessels. President Donald Trump indicated that Iran wants to negotiate with the United States, while investors anticipate a Federal Reserve rate increase to a 3.75-4.00% range. The combined geopolitical tension and monetary policy expectations are keeping oil prices above the $100 mark. Analysts note that the ongoing Yemen conflict and the broader Middle East instability could further tighten markets.
Why it matters
Higher oil prices affect fuel costs worldwide and signal heightened geopolitical risk to the global economy.
How this story developed
- Aug 23 Iran readies major fuel price hike amid US sanctions and war pressures
- Sep 7 Brent crude climbed to about $97 a barrel as US‑Iran clashes intensified, and analysts said gasoline prices may ease in October with the shift to winter‑grade fuel.
- Sep 8 The US military said it destroyed five Iranian oil tankers in retaliation for two missile strikes on a US warship over two days.
- Sep 9 Iran launched a missile strike on a Jordanian military base.
- Sep 9 US military says it destroyed five Iranian crude oil carriers following IRGC ballistic missile attacks on a US Navy warship.
- Sep 9 Brent futures rose above $100 a barrel on Wednesday, driven by escalating attacks in the Middle East that have tightened oil supplies.
- Sep 9 Iran said its forces also engaged two US vessels and eight oil tankers in the Strait of Hormuz.
- Sep 10 Brent crude rose above $105 per barrel.
- Sep 11 Diesel fuel in the United States has risen past $6 per gallon, a sharp increase linked to recent military actions involving the U.S., Israel and Iran.
- Sep 11 Diesel prices crossed $6 per gallon for the first time.
- Sep 12 Iran announced attacks on ten vessels near the Strait of Hormuz.
- Sep 13 A ship was hit by a projectile while transiting the Strait of Hormuz, prompting crew evacuation after a fire broke out, according to UKMTO.
- Sep 14 Saudi Arabia temporarily closed its east‑west pipeline after a drone strike traced to Iraq, while an Iranian commercial vessel reported casualties nearby.
- Sep 14 Brent futures rose to $109.97, a three‑month peak, widening the price gap with regional benchmarks.
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