Oil prices surged in Asian trade on Monday as mounting pressure on Middle East export routes sent Brent crude to $108 per barrel and WTI jumping to $103.
The sharp price movement reflects growing alarm among traders and energy markets over the simultaneous disruption of two critical crude export corridors in the region.
Tanker owners and energy exporters are exercising increasing caution when navigating the Strait of Hormuz amid a fresh escalation of hostilities, including direct strikes on vessels operating in the area.
Adding to the instability, Iran-aligned Houthi forces in the Red Sea have been actively targeting Saudi shipments, compounding fears over reliable crude delivery from the Gulf region.
Saudi Arabia’s oil exports have become significantly more exposed to the ongoing hostilities following the shutdown of the kingdom’s critical East-West pipeline over the weekend.
The East-West pipeline has served as a key bypass route for the world’s biggest crude oil exporter, allowing shipments to reach global markets through the Red Sea port of Yanbu without passing through the Strait of Hormuz.
Saudi Arabia described the pipeline shutdown as a precautionary measure, taken in direct response to a drone attack on the infrastructure that occurred on Thursday.
The drones used in that attack were launched from Iraq, in a province situated close to the Iranian border, adding a new and alarming dimension to the region’s already volatile security picture.
The closure of the East-West pipeline eliminates one of the primary alternatives to Hormuz transit, leaving Saudi export routes dangerously exposed at a moment when the strait itself is under pressure.
The convergence of threats, covering both Hormuz transit risks and Red Sea targeting of Saudi vessels, represents a significant escalation in the potential for supply disruption affecting global crude markets.
Energy traders reacted swiftly to the news, pushing oil prices higher as the dual risk to Middle East supply became apparent at the start of the trading week.
With the Strait of Hormuz carrying a substantial share of global seaborne crude exports and the East-West bypass now offline, market participants are watching closely for any further deterioration in the region’s security environment.
