Oil prices jumped more than $3 as fresh attacks hit Saudi Arabia and shipping in the Strait of Hormuz, while the Saudi pipeline designed to bypass the strait remains offline.
Brent rose $3.62 to $108.23 a barrel, while WTI gained $3.15 to $103.20 as markets opened.
Saudi state media reported damage to homes and a mosque in Jazan following an attack authorities attributed to the Houthis.
The Houthis separately claimed an attack on a Saudi military base.
In the Strait of Hormuz, a vessel was struck by a projectile, caught fire and was evacuated.
Iran also says a strike on an Iranian commercial vessel killed one person and wounded four.
THE BACKUP ROUTE IS DOWN
Saudi Arabia’s East-West pipeline was built to move oil to the Red Sea without passing through Hormuz.
It is already shut following last week’s drone attack.
That leaves both the Gulf’s principal oil chokepoint and the infrastructure intended to bypass it under pressure simultaneously.
A planned meeting between Gulf states and Iran in Oman over management of the strait has now been postponed.
Markets are beginning to price in the consequences.
Brent: $108.23.
Hormuz threatened.
The Saudi bypass offline.
The redundancy built into the Gulf oil system is being tested from both directions.
Sources
Reuters: Oil jumps after fresh Saudi and Hormuz attacks
Associated Press: Iranian ship strike and regional escalation
Join the Dissenting Citizen Newsletter
Independent news and commentary delivered directly to your inbox.
