Oil Prices Spike as Middle East Tensions Threaten Global Supply

WTI futures climbed to $102.2 per barrel, while Brent reached $106.8, reflecting deep anxiety over the security of critical energy infrastructure. The Houthis claimed a large-scale drone and missile assault on a base in Sharurah, while Saudi authorities confirmed a separate projectile impact in the Jazan region. These strikes follow a damaging drone attack on the East-West Pipeline last week, an incident that forced the Kingdom to shutter one of its most vital crude export routes. Analysts warn that if this infrastructure remains offline, roughly 4% of global oil supply could vanish from the market.

Beyond the pipeline, the maritime situation has deteriorated. The UKMTO reported a vessel struck by an unknown projectile near the Strait of Hormuz, coinciding with reports of an Iranian cargo ship hit off Qeshm Island. Simultaneously, the Houthi advance toward the island of Perim threatens their ability to mine or monitor the Red Sea, effectively tightening their grip on the Bab el-Mandeb Strait. Any hope for de-escalation faltered on Monday when Oman’s Foreign Minister, Badr Albusaidi, announced the postponement of a landmark meeting between Gulf diplomats and Iran. Without a clear timeline for the pipeline’s repair or a breakthrough in regional diplomacy, the market remains trapped in a state of high-stakes uncertainty.