Oil Prices Surge as Saudi Export Halt and Libyan Field Shutdown Raise Supply Fears

On Tuesday, oil markets rallied with Brent crude up $2.81 to $108.49 a barrel and West Texas Intermediate climbing $3.29 to $104.68, their highest in nearly four months. The surge was triggered by a report that Saudi Arabia had halted oil loadings at its Red Sea export hub in Yanbu, after notifying European buyers of possible cargo cancellations. In Libya, the National Oil Corporation said three fields were offline after the Petroleum Facilities Guard shut a valve on the Hamada-Zawiya export pipeline, threatening further force majeure declarations.

These supply shocks come amid fresh Houthi missile and drone attacks on Saudi targets, including the East-West Pipeline, which could cut up to 4% of global oil supply if prolonged. Analysts warned that continued disruptions could push Brent toward $120 a barrel, while diesel futures in the United States rose over 5.9% on attacks on Russian and Ukrainian energy assets.