International oil markets are facing renewed pressure as attacks on energy infrastructure and commercial vessels raise concerns about disruptions to crude supplies. The latest developments have pushed Brent crude above $108 per barrel, while US benchmark West Texas Intermediate (WTI) has crossed $103.

Attacks threaten global energy supplies

Saudi Arabia’s East-West oil pipeline was shut down after an aerial attack. The 1,200-kilometre pipeline provides an alternative route for Saudi oil exports, bypassing the Strait of Hormuz.

The pipeline has transported around 4 million to 5 million barrels of crude daily in recent months, equivalent to approximately 4% to 5% of global oil supplies. Its closure has intensified concerns about a wider energy shortage.

Regional tensions fuel market uncertainty

Saudi state media reported damage to homes and a mosque in the southern Jazan province following Houthi attacks. The group also claimed to have targeted a Saudi military base in a neighbouring province.

Meanwhile, the UK Maritime Trade Operations agency reported that a vessel in the Strait of Hormuz was struck by a missile-like projectile and caught fire. Iran also reported an attack on a commercial vessel near its coast, which killed one person and injured four crew members.

Oil prices could climb further

Analysts warn that crude prices could rise further if the pipeline remains closed or diplomatic efforts fail. The postponement of a planned meeting between Gulf countries and Iran in Oman has added to uncertainty.

The latest surge follows an approximately 8% increase in oil prices last week, with Brent crossing $100 per barrel for the first time since July.