Houthis Attack Saudi Oil Tankers... Brent Crude Surpasses $98

After Yemen's Houthi rebels, backed by Iran, attacked Saudi Arabian oil tankers, Brent crude prices surpassed 98 dollars per barrel. The market is increasingly concerned about the possibility of simultaneous disruptions in key Middle Eastern oil shipping routes.

On the 23rd (local time), the Houthi rebels announced on their own broadcaster, Al Masirah, that they had used missiles and drones to attack Saudi oil tankers Encelia and Layla. The Houthis claimed that these vessels had violated the Red Sea maritime blockade they had declared.

Saudi state-run SPA news agency also confirmed that the Encelia was attacked and a fire broke out at the bow of the vessel. However, it was reported that all crew members are safe.

Following these attacks, Brent crude prices on the London market rose to 98.10 dollars per barrel during trading, marking the highest level since early June. Since military clashes intensified between the United States and Iran, international oil prices have surged by more than 30% this month alone.

The market views this attack as an event that could impact the overall energy supply chain, rather than a mere tanker strike.

After Iran blocked the Strait of Hormuz, Saudi Arabia has been exporting crude oil through the East-West Pipeline that connects its eastern oil fields with the Yanbu port on the Red Sea coast. This route, which passes through the Bab el-Mandeb Strait on its way to Asia, has played a key role in Saudi oil exports.

According to energy data firm Kpler, Saudi Arabia exports about 4.9 million barrels per day of crude oil and petroleum products through this route.

However, after the Houthis announced a maritime blockade against Saudi Arabia earlier this week, some oil tankers navigating the Red Sea have already begun to turn back. The Houthis are effectively blocking Red Sea passage by issuing radio warnings to vessels in transit.

Market participants note that the simultaneous threats to both the Strait of Hormuz and the Bab el-Mandeb Strait are highly unusual. The Strait of Hormuz is a critical shipping lane through which about 20% of the world’s seaborne oil trade passes, while the Bab el-Mandeb Strait is also a major global energy and logistics corridor connecting the Red Sea with the Suez Canal. There are concerns that if transportation through both straits is disrupted at the same time, it could have a direct impact on energy supply chains not only in Asia but also in Europe.

Helima Croft, Head of Global Commodity Strategy at RBC Capital Markets, analyzed in a report that "full-scale participation by the Houthis could significantly weaken the rerouting effect of the East-West Pipeline and further expand the loss of oil supply caused by the war."

As the Houthi attacks on Saudi oil tankers have increased insecurity on key Middle Eastern oil shipping routes, international oil prices have soared past 98 dollars, heightening tensions in the energy market.

This content was produced with the assistance of AI translation services.