Middle East oil disruption intensified Sunday after new attacks affected shipping near the Strait of Hormuz and Saudi Arabia’s key East-West pipeline.
Oil prices rose above $100 a barrel last week for the first time since July. Meanwhile, U.S. retail diesel climbed above $6.20 a gallon on Sunday, which Reuters described as another record.
The UK Maritime Trade Operations agency said a projectile struck a vessel passing through the Strait of Hormuz. The strike caused a fire and forced the crew to evacuate.
Separately, Iran said another attack hit an Iranian commercial vessel off its coast. Tehran reported one person killed and four crew members wounded.
Read: Houthi Advance Shows Resilience Despite Reduced Iran Support
Saudi Arabia also shut its 1,200-kilometre East-West pipeline after drone strikes on Friday. The route carries oil across the Arabian Peninsula and allows exports to bypass the Strait of Hormuz.
Traders and Saudi oil buyers told Reuters that Riyadh had enough oil stored at its Red Sea port of Yanbu to maintain exports for five to seven days if the pipeline remained closed.
The Houthis also captured Perim Island, which lies in the Bab el-Mandeb Strait at the Red Sea’s southern entrance. Traders expected further upward pressure on oil prices when markets reopened Monday because the latest developments threatened additional supply disruption, Reuters reported.
Read: USS George Washington Guarded by Destroyers in The Arabian Sea
Iranian officials are due to meet Gulf Arab states in Oman on Monday to discuss future shipping routes through the Strait of Hormuz. However, Oman has not publicly confirmed an agreement or the meeting.
