The strike at the Yanbu port on the Red Sea leaves Saudi Arabia with only five to seven days of export capacity, according to industry reports. While the extent of physical damage remains unconfirmed, the vulnerability of the Red Sea waterway is intensifying, particularly as Houthi forces expand their influence in the region. West Texas Intermediate followed the trend, trading at $102.66 per barrel as traders weigh the potential for a prolonged supply disruption against ongoing shipments through the Strait of Hormuz.
Brent Crude Climbs Toward $108 Amid Saudi Pipeline Attack
A drone strike on Saudi Arabia’s critical East-West pipeline has rattled global energy markets, pushing Brent crude to $108 per barrel. The attack on the infrastructure, capable of transporting 7 million barrels daily, threatens to choke off 4% of global supply just as diplomatic efforts to stabilize the region falter.
ING commodity strategists Warren Patterson and Ewa Manthey maintain a cautious outlook, projecting a return to $80 per barrel by the year’s end, provided shipping lanes remain open. Political rhetoric is further complicating the landscape: President Trump recently suggested a continued U.S. presence in Iran to secure oil assets, drawing a parallel to Venezuela. With a planned peace summit in Oman canceled, prospects for de-escalation appear increasingly distant, leaving markets braced for continued volatility.
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