FX.co ★ Oil Hovers at Over 4-Month Highs

Crude oil traded above $105 per barrel on Wednesday, hovering near its highest level in more than four months amid escalating supply disruptions across the Middle East. Saudi Arabia reportedly cancelled several shipments after drone attacks forced the shutdown of the East-West pipeline, and has informed European customers that multiple September deliveries have been scrapped. There is still no clear timeline for restoring operations at this crucial pipeline—which offers an alternative route that bypasses the Strait of Hormuz—as Iran-backed Houthi militants renewed attacks on Saudi territory this week. In Libya, the national oil company halted production at two oilfields and a pumping station due to ongoing protests. Beyond the Middle East, Russia struck petrol stations in Kyiv, while Ukraine targeted a Russian oil refinery, despite US President Trump’s recent announcement that both countries had agreed to stop attacking each other’s energy infrastructure.