Houthi attacks on Saudi Arabia and tankers in the Strait of Hormuz have intensified in recent days. These developments have led to an increase in oil prices in the global market and heightened concerns about disruptions in oil supply from the Middle East.
Increase in Crude Oil Prices in the Global Market
The price of Brent crude oil rose by 76 cents, equivalent to 0.73%, to reach $105.48 per barrel in trading on Monday, October 12. Additionally, West Texas Intermediate crude oil also increased by 59 cents, or 0.64%, to $92.44. This upward trend in oil prices has been influenced by the intensification of conflicts in the Middle East.
Read more: Shell acquires 30% of the $10 billion Akinor oil project in Canada
Attacks on Tankers and Their Impact on Oil Exports
In recent days, attacks on tankers in the Strait of Hormuz have increased. The UK Maritime Trade Operations Center reported that a tanker near the port of Sohar, Oman was targeted by a drone attack, and another tanker was damaged by an unidentified projectile while passing through the Strait of Hormuz. The Islamic Revolutionary Guard Corps also reported that three tankers collided with sea mines in the Strait of Hormuz, stating that these tankers struck mines while navigating unauthorized routes.
The consequences of these attacks could negatively impact the recovery of Middle Eastern crude oil exports in September. The Revolutionary Guard has also warned that vessels that turn off their navigation and identification systems in the Strait of Hormuz will be considered hostile.
Consequences of Houthi Attacks on Saudi Arabia
The increase in oil prices has also been attributed to the escalation of Houthi attacks on Saudi Arabia. In recent attacks on Riyadh International Airport, 14 people were killed and over 300 were injured. Donald Trump, the President of the United States, has stated that Washington is considering participation in Saudi attacks against the Houthis.
Goldman Sachs has raised its forecast for Brent oil prices in December from $85 to $90 per barrel. Analysts at the bank say that renewed escalation of conflicts could still drive oil prices higher and estimate that over $20 of the price per barrel is due to existing risks.
Read more: Solstad Maritime signs new contracts worth $30 million · Iran faces a shortage of oil export options
