Amid escalating tensions in the Gulf region, oil prices have once again risen sharply. On Monday morning, the price of a barrel of North Sea Brent crude climbed 2.8 percent to $107.54, while the price of US WTI crude rose 2.3 percent to $102.34. The worsening situation fueled concerns early in the week about potential disruptions to the global energy supply.
Since February of this year, global supplies of oil and gas have been significantly constrained as a result of the war with Iran initiated by the US and Israel in February. For one thing, Tehran regularly attacks US bases and energy infrastructure in the Gulf states allied with the US. Moreover, the Strait of Hormuz—crucial for the transport of oil and gas—is effectively blockaded.
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Another key transport route—the Bab al-Mandab Strait in the Red Sea—is also coming under increasing pressure: the Iran-backed Houthi militia in Yemen announced on Friday that it had seized control of the strait. Furthermore, Saudi Arabia—which supports government forces fighting the Houthis in Yemen—temporarily shut down the vital East-West Pipeline following Houthi drone attacks.
On Sunday, according to Houthi reports, Saudi Arabia launched more than 50 attacks on the militia’s positions within 24 hours. Prior to that, the Houthis stated that they had attacked an army base in the kingdom using drones and missiles.
Author: AFP – kas/ck
Sources: AFP Press Portal