Brent Crude Surges, Nears $110 Mark... "Aftermath of Saudi Bypass Pipeline Attack"

East-West Pipeline Halted Amid Hormuz Crisis
Additional Oil Tanker Attacked
Fears of Tightening Supply Grow

AP Yonhap News

Brent crude, the global oil price benchmark, has surged to near the $110 per barrel mark. The shutdown of Saudi Arabia's East-West Pipeline, an alternative oil delivery route bypassing the Strait of Hormuz, due to an attack, has fueled fears over supply, causing oil prices to soar. With reports emerging of an additional oil tanker being attacked in the Strait of Hormuz, and with the United States and Iran taking turns attacking tankers, there are concerns that the upward trend in prices could continue.

According to Bloomberg News on the 13th (local time), soon after the London ICE Futures Exchange opened, Brent crude for November delivery was trading at $107.48 per barrel, up 2.74% from the previous day. West Texas Intermediate (WTI) for November delivery also rose 2.19% from the previous session, trading at $102.24 per barrel.

On September 10, Saudi authorities announced that the East-West Pipeline had been hit and its operations temporarily halted, triggering another sharp rise in oil prices. The pipeline, which has provided an alternative route to bypass the Strait of Hormuz, had expanded its crude supply from 900,000 barrels per day at the onset of the conflict to as much as 4.7 million barrels per day last month. It has become a key channel, with more than half of Saudi Arabia’s crude oil exports passing through it.

The party responsible for the pipeline attack has not yet been identified, but Iran is suspected to be behind it. According to Al Jazeera, Saudi authorities believe that the drone used in the attack came from Iraq. Iraq is home to several Shiite militia organizations linked to Iran, and it is being analyzed that one of these groups may have carried out the attack at Iran’s behest.

The situation in the Strait of Hormuz shows no sign of improvement. CNBC reports that the UK Maritime Trade Operations (UKMTO) said an oil tanker was hit by an unidentified projectile in the Strait of Hormuz on this day. As U.S. forces—enforcing a blockade along Iran’s coast—and the Iranian Islamic Revolutionary Guard Corps (IRGC) both target rival tankers, the number of incidents continues to rise. U.S. Central Command (CENTCOM), which is commanding the war against Iran, announced on the 9th that 10 Iranian-flagged oil tankers had been sunk.

A meeting to establish a temporary maritime transport corridor through the Strait of Hormuz—an initiative led by Oman and other Arab nations in cooperation with Iran—was suddenly postponed. Omani Foreign Minister Badr Albusaidi announced through the social media platform X that “the regional meeting scheduled for the 14th to reach an agreement has been postponed.” Previously, the foreign ministries of Iran and Oman had said that a ministerial meeting—including representatives from neighboring Arab countries—would be held in Salalah, Oman to reach an agreement on the temporary maritime route. However, the meeting was abruptly called off.

Amid escalating geopolitical tensions in the Middle East, market fears are also mounting that international crude oil prices could surpass $110 per barrel, the highest level since the outbreak of the Iran war. Bloomberg News reported, “The prospect of renewed negotiations between the United States and Iran seems increasingly unlikely, while concerns are mounting that Yemen’s Houthi rebels—backed by Iran—could expand their operations. Market participants are closely watching the situation, especially if the Houthis strengthen their control over the Bab-el-Mandeb strait, which could block the Red Sea shipping route and have significant regional repercussions.”

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