Brent crude climbs above 106 dollars amid Middle East supply disruptions

Brent crude prices rose past 106 dollars per barrel following fresh attacks on shipping in the Strait of Hormuz and military strikes in Saudi Arabia. Oilprice and Rigzone News both reported that Brent crude settled above 106 dollars per barrel as regional supply threats intensified. Rigzone News noted that West Texas Intermediate crude also closed one percent higher. [1][3][8]

Attacks by Iran-backed Houthi rebels hit targets across Saudi Arabia, including a strike that damaged the headquarters of Saudi Aramco, according to Rigzone News. State media reported that the attacks reduced Saudi oil output and cut flows through the East-West Pipeline, EnergyNow.com reported. [3][6]

Shipping in the Middle East faces mounting pressure from increased Iranian attacks on tankers in the Strait of Hormuz, Oilprice and Rigzone News reported. FTMQ Climate reported earlier that crude flows through the Strait of Hormuz dropped 27 percent to 10.1 million barrels per day. The Strait of Hormuz is a critical maritime choke point that handles roughly 25 percent of the world seaborne oil trade. [1][3][12][13]

Depleted global inventories and escalating geopolitical risks have limited the capacity for emergency supply releases, Oilprice reported. Oilprice added that OPEC expects stronger oil demand in 2027, further tightening global fuel markets. [1]