Oil Prices Rise Above $106 As Saudi Pipeline Attack Fuels Global Supply Concerns

Global crude oil prices gained on Tuesday as investors grew concerned about potential supply disruptions following attacks on Saudi Arabia’s important East-West pipeline. Rising tensions in the Gulf region also added to uncertainty over future oil flows.

Brent crude futures increased by $1.24, or 1.18%, to $106.93 a barrel, while US West Texas Intermediate (WTI) rose $1.29, or 1.24%, to $102.65 a barrel. Both benchmarks had recorded gains in the previous trading session as well.

The latest increase in oil prices followed attacks that forced Saudi Arabia to halt operations on the East-West pipeline, a crucial route that transports crude from the kingdom’s oil-producing regions to the Red Sea.

The pipeline has a capacity of around 4 million barrels per day, accounting for nearly 4% of global oil supply. Any extended disruption could tighten international crude markets and increase pressure on prices.

The pipeline has gained greater importance as shipping through the Strait of Hormuz remains severely affected due to ongoing regional tensions. The route allows Saudi Arabia to export crude while reducing dependence on the strategic waterway.

Market concerns have also increased after Iran-backed Houthi forces carried out fresh attacks in Yemen. Meanwhile, Gulf Arab nations postponed planned talks with Iran, raising fears that the broader Middle East conflict could intensify.

Analysts said continued disruptions to energy infrastructure and shipping routes could lead to further gains in crude prices. Traders are closely monitoring developments across the region for indications of additional threats to oil production and exports.

With Saudi Arabia’s alternative export routes facing pressure and uncertainty surrounding regional stability, global energy markets remain vulnerable to further supply shocks.