Oil settles higher after Saudi strikes stoke supply worries
Both crude benchmarks increased by almost 5%
Oil prices ticked up around 1 percent on Monday (Sep 14) after new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East raised concerns about potential supply disruptions. Both key crude benchmarks surged nearly 5 percent before retracting from session peaks following remarks by US President Donald Trump indicating Iran was keen to strike a deal with Washington.
Brent futures surged US$1.07, or 1 percent, to US$105.68 per barrel, while US WTI crude rose US$1.34, or 1.3 percent, to US$101.39. Yemen's Iran-backed Houthis launched fresh attacks on Saudi Arabia, targeting military facilities and knocking out the country's east-west pipeline, which could affect up to 4 percent of global oil exports.
The Houthis have made rapid gains in Yemen, capturing key territory including Perim Island at the mouth of the Red Sea. Separately, Gulf Arab states called off planned talks with Iran, heightening fears the conflict could spread and threaten global oil supplies. Ship transits through the strategically vital Strait of Hormuz also dropped to single digits, far below the usual 10-day average of 14.
The situation was further complicated by the US and Israel's recent attacks on Iran, while US policymakers are expected to raise interest rates, potentially dampening demand for energy.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
