Brent crude oil prices have surged to a five-month high amid escalating tensions in the Middle East, driven by Houthi attacks in Saudi Arabia. The attacks have raised concerns about potential disruptions to energy supplies from the region, a key area for global oil production.
Brent crude futures increased by 0.7% to $113.96 per barrel, reaching a peak of $114.72, the highest level since May 4. Meanwhile, U.S. West Texas Intermediate (WTI) crude saw a rise of 1.1% to $100.57 per barrel. While Brent is on track for a nearly 4% gain for the third consecutive week, WTI is poised for a weekly decline of approximately 0.8%.
Market concerns have intensified following reports of Saudi Aramco’s headquarters in Dhahran being evacuated due to escalating conflict involving Saudi Arabia and Yemen-based Houthi forces. Analysts warn that further attacks could disrupt oil shipments, exacerbating existing supply shortages. Uncertain shipping routes and elevated freight costs are adding additional pressure to the global energy market.
The conflict has also heightened security concerns for the Bab el-Mandeb Strait, a crucial shipping route that connects the Red Sea to the Gulf of Aden. Any prolonged disruptions in this area could lead to delays in energy deliveries, potentially sustaining elevated oil prices.
In addition to the Middle East tensions, supply concerns have emerged in Libya, where the shutdown of a pipeline valve has reduced production at the Hamada and Tahara oilfields. This reduction has affected the flow of oil to the Zawiya port.
Amid these challenges, a Malta-flagged tanker carrying 40,000 metric tons of Russian diesel is en route to New York. This move follows Russia’s decision to resume diesel exports to international markets, including the United States, in an effort to alleviate fuel-price pressures.
Oil markets remain sensitive to ongoing developments in the Middle East, with potential shipping disruptions and the time required to restore affected energy operations keeping traders on edge.