Crude oil climbed above $105.50 a barrel on Tuesday, its highest level in four months, after Saudi Arabia reportedly cancelled several shipments following drone attacks that forced the shutdown of a key export pipeline. The kingdom is said to have informed some European customers that certain September deliveries would be cancelled, while crude loadings at the Red Sea port of Yanbu were suspended.
At the same time, Iran-backed Houthi militants resumed strikes on Saudi targets this week, adding to regional tensions. Security in the Strait of Hormuz remains fragile, with at least two tankers attacked since Saturday. According to data from Kpler, commodity vessel traffic through the strait dropped to four ships on Monday, down from 10 the previous day.
Disruptions extended beyond the Gulf. In Libya, the national oil company halted production at two oilfields and a pumping station amid ongoing protests. In Eastern Europe, Russia struck petrol stations in Kyiv, while Ukraine targeted a Russian oil refinery, despite US President Donald Trump’s announcement that both sides had agreed to cease attacks on each other’s energy infrastructure.
