Brent at $105.70 as Gulf states halt Hormuz talks, Saudi Arabia strikes Houthis

Brent crude prices reached $105.70 early Tuesday (Sept. 15), up 1.02% a barrel, amid fears of a wider conflict and prolonged disruption to global oil supplies following Saudi Arabia's strikes on Yemen's Houthi rebels and the postponement of Iran's talks with Gulf Cooperation Council states. The planned meeting in Oman aimed to discuss a temporary route for commercial shipping through the Strait of Hormuz, a vital oil chokepoint that handles about one-fifth of global oil exports.

However, the meeting was postponed "in the interests of consensus," as Omani Foreign Minister Sayyid Badr Albusaidi acknowledged deep divisions among Gulf states over terms to restore navigation through the waterway, which has been largely closed since the U.S.-Israeli military operations against Iran began on February 28.

The price surge to $108.41 during Monday trading was followed by traders' concerns over deeper supply disruption as Saudi Arabia launched retaliatory strikes against the Houthis and attacks on shipping near Hormuz intensified. Murban crude from Abu Dhabi even spiked 7% to $127.8, or $8.30 per barrel, as the uncertainty surrounding oil exports heightened.

The Saudi-Houthi conflict has also raised concerns about potential disruptions in transit through the Bab el-Mandeb, the Red Sea chokepoint linking the Gulf of Aden to the Suez Canal route. With diplomatic progress seemingly stalled, the future of oil deliveries through these critical routes remains uncertain.