Oil prices continued to rise on Tuesday as fresh attacks on Saudi Arabia and growing tensions around the Strait of Hormuz increased concerns about disruptions to global crude supplies.
Brent crude futures climbed 1.85% to around $107.64 per barrel, while West Texas Intermediate (WTI) gained 1.95%, or $1.98, to reach $103.37 per barrel by 12:11 p.m. PST.
The latest increase followed a more than 2% jump in oil prices on Monday after renewed attacks on Saudi energy infrastructure heightened concerns over supply and shipping security in the Gulf region.
A major concern for global markets is the shutdown of Saudi Arabia’s East-West oil pipeline following a drone attack. The approximately 1,200-kilometre pipeline transports crude from the Persian Gulf to Yanbu on the Red Sea, providing Saudi Arabia with an alternative route that bypasses the Strait of Hormuz.
The pipeline has the capacity to transport around 4 million barrels of crude per day, equivalent to roughly 4% of global oil supply. Its shutdown has reduced available alternative export capacity at a time when shipping through the Strait of Hormuz is already facing heightened risks.
Security concerns have also increased following missile and drone attacks by Yemen’s Iran-backed Houthi forces on Saudi targets. Saudi authorities reported that 13 civilians were injured in attacks on several cities on Monday.
The situation around the Red Sea has added further uncertainty for energy markets, with the Houthis increasing their presence near key maritime routes, including the Bab el-Mandeb Strait.
Meanwhile, tensions around the Strait of Hormuz continue to weigh on traders. Iran has reported military activity involving US unmanned systems, while US Central Command rejected Iran’s claim that the Panama-flagged oil tanker El Gaia struck a naval mine.
CENTCOM said the tanker had previously been hit by an Iranian missile and was later attacked by a drone, describing the Iranian account of a mine strike as false.
The combination of the Saudi pipeline outage, attacks on energy infrastructure and rising risks around the Gulf and Red Sea has kept global oil markets under pressure. A prolonged disruption could push crude prices higher and increase fuel and transportation costs worldwide.
For Pakistan, sustained oil prices above $100 per barrel could create additional pressure on domestic petrol and diesel prices, given the country’s heavy reliance on imported petroleum products.
