The situation has increased attention on global energy flows, particularly through key waterways used for oil transportation. Analysts are monitoring whether reduced shipping activity in the Strait of Hormuz and the Red Sea could continue to affect prices.
Oil Markets React After Attacks on Saudi Energy Assets
The international benchmark Brent crude reached $99 per barrel on Tuesday after Saudi Arabia reported attacks on energy facilities. According to the Saudi Press Agency, the attacks were carried out by the Houthis, and 73 civilians were injured. Saudi officials also condemned attacks on commercial vessels in the Red Sea and raised concerns about maritime navigation.
U.S. crude prices also increased, rising more than 2.5% to nearly $94 per barrel, while wholesale gasoline prices rose 1.4%. The movement in energy markets came after the United States struck three Iranian oil tankers on Sunday, sinking one vessel, following Iranian ballistic missile launches toward U.S. Navy ships.
The conflict has affected traffic through the Strait of Hormuz, a major route for global energy shipments. According to the reports, only four ships passed through the waterway on Saturday and six on Sunday. Before the conflict, the strait transported more than 20% of the world’s energy supply.
Traffic through the Bab el Mandeb Strait between the Arabian Peninsula and northeastern Africa also declined slightly. According to figures from MarineTraffic, vessel transits dropped 16% from the previous week, although more than 260 ships still crossed the route during that period.
Analysts Warn of Further Price Pressure if Disruptions Continue
Energy analysts have warned that oil prices could rise further if shipping disruptions remain in place. According to Goldman Sachs commodities analysts, Brent could exceed $120 per barrel if Persian Gulf oil flows stay low. The analysts identified more intense attacks on shipping routes in the Strait of Hormuz and the Red Sea as a possible driver of lower supply and higher prices.
HSBC analysts also estimated that Brent could rise toward $120 if diplomacy fails and traffic through Hormuz remains limited. Their current forecast places Brent around $95 through the end of the year, while their longer-term forecasts were revised higher.
Oil prices have already moved sharply since the start of the conflict. According to the data cited by NBC News, Brent has increased 36% since the war began and is more than 62% higher than at the start of the year. U.S. average gasoline prices have also risen, reaching $4.15 per gallon on Tuesday, while diesel prices remained at $5.90 per gallon after reaching a record high.
Governments previously coordinated with the International Energy Agency to release 400 million barrels of oil in an effort to reduce pressure on markets. Analysts continue to track whether available supplies and shipping conditions can stabilize energy prices as the conflict develops.
