Since the US-Iran war started crude oil prices have been extremely volatile. And the recent attacks on Saudi Arabia by Houthis and Iranian attacks on ships in the Gulf has led to the prices shooting up more than 2%.
Brent crude futures rose $2.90, or 2.77%, to $107.51 per barrel as of 2313 GMT. WTI futures rose $2.27, or 2.27%, to $102.32 per barrel. Prices had initially risen more than 3% at market open.
Houthis attacked the country’s southern Jazan province and a Saudi military base in a neighbouring province on Sunday. While a merchant vessel was struck in the Strait of Hormuz on the same day killing one person and injuring three others, Iranian authorities said.
According to British maritime security agency UKMTO, a vessel in the Strait of Hormuz was hit by a projectile, causing a fire and forcing the crew to be evacuated.
Saudi Arabia pipeline targeted
Saudi Arabia’s East-West pipeline was targeted in the Riyadh and Madinah regions on Thursday morning. Several people were injured in the attacks, according to the ministry.
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Since the attack, Saudi Arabia temporarily shut its crucial East-West oil pipeline as a precaution.
The East-West pipeline, which has a capacity of 7 million barrels per day, carries crude from Saudi Arabia’s eastern oil fields to export terminals on the Red Sea. It provides the kingdom with an alternative route that reduces its dependence on the Strait of Hormuz for oil exports.
The Houthis declared a maritime embargo against Saudi Arabia in July and have sought to disrupt the kingdom’s oil exports through the Bab el-Mandeb Strait, which links the southern Red Sea with global markets.
