Oil Prices Rise Following Attacks on Energy Infrastructure
As conflicts in the Middle East and transportation risks raise concerns in global markets, Brent crude reached $106.93.
Amid growing concerns over disruptions to global oil supply following attacks on energy infrastructure in Saudi Arabia, Brent crude rose to $106.93 per barrel.
Increase in Oil Prices
Oil prices trended upward on Tuesday due to attacks on energy infrastructure in Saudi Arabia and maritime shipping risks in the Gulf. Brent crude increased by 1.18 percent to $106.93, while US crude gained 1.24 percent to reach $102.65.
Houthi Attacks
The Iran-backed Houthis in Yemen launched a missile and drone attack on the Khamis Mushait military air base in southern Saudi Arabia. The attacks targeted aircraft hangars, radar systems, runways, and ammunition depots.
Pipeline and Pipeline Route
As a result of the attack, the East-West oil pipeline, which allows Saudi Arabia's oil exports to bypass the Strait of Hormuz, was deactivated. This situation put approximately 4 million barrels of daily shipments at risk, heightening unease in the markets.
Expert Assessments and Trade
KCM Trade Chief Market Analyst Tim Waterer stated that investors evaluate every new attack as a supply risk. Additionally, it was reported that commercial vessel traffic passing through the Strait of Hormuz dropped below 10 crossings per day over the weekend.
Ukraine Ceasefire Proposal
On the other hand, Ukrainian President Volodymyr Zelenskyy stated that the Kyiv administration is ready to support the US proposal for a Russia-Ukraine ceasefire targeting exclusively energy facilities.