Oil prices jump after Saudi, Gulf strikes

Global oil prices have seen a significant surge, following recent strikes on Saudi energy infrastructure and Hormuz shipping, exacerbating global supply chain concerns. Latest disruptions include drone attacks forcing the shutdown of Saudi Arabia's East-West Crude Oil Pipeline. The pipeline served as a critical alternative route for millions of barrels of oil daily, bypassing the Strait of Hormuz, closed to commercial traffic since February 2026 due to regional hostilities. A vessel in the Strait of Hormuz was struck by a projectile, causing a fire. Iran confirmed its vessel was hit, with one fatality and four wounded. These incidents followed Houthi attacks on Saudi Arabia's Jazan province, damaging targets. Iran-aligned Houthi rebels also launched missile and drone strikes on multiple southern Saudi cities, igniting fires at oil facilities, injuring 73, and halting operations at key energy sites. The regional war has led Iran to restrict passage through the Strait of Hormuz, a choke point for global oil trade. The Houthi movement intensified anxieties by seizing Perim island in the Bab el-Mandeb Strait, a vital shipping lane, expanding control over critical maritime routes. These combined threats to infrastructure and maritime transit points have pushed international oil benchmark prices, such as Brent crude, to 107-108 US dollars per barrel. Analysts warn prolonged disruptions could lead to further price increases and an energy crunch. Saudi Arabia faces depletion of export oil stocks if the pipeline is not quickly restored. The international community remains on high alert.