Brent crude exceeds $107: Supply concerns from Saudi Arabia and Hormuz drive prices up

Prices in global oil markets have begun to rise again due to the impact of Middle East-centered tensions. The November futures contract for Brent crude, the international benchmark, rose by 1.28% to $107.03 per barrel.

The US oil benchmark, West Texas Intermediate (WTI), also gained 1.50% to reach $102.91. It is noted that the volatility in prices is driven by the risks posed by regional conflicts to energy infrastructure and oil transportation.

One of the developments at the center of market attention is Saudi Arabia's closure of its critical East-West oil pipeline. It was reported that the pipeline, which bypasses the Strait of Hormuz to transport oil to export terminals on the Red Sea coast, was taken out of service following damage caused by unmanned aerial vehicles reportedly launched from Iraq.

This decision is being evaluated as a new risk factor at a time when concerns regarding oil supply are already high. Mutual statements and claims of operations around the Strait of Hormuz have also increased market anxiety.

The Iranian military announced that it had destroyed an advanced US unmanned aerial vehicle over the Strait of Hormuz. US President Donald Trump, in a statement on Sunday, said that Washington could continue its operations against Iran and could seize Iranian oil.

Meanwhile, the US Central Command (CENTCOM) rejected the claim by the Iranian Revolutionary Guard Corps that the Panama-flagged oil tanker El Gaia had struck a sea mine in the Strait of Hormuz.

CENTCOM argued that the tanker was attacked by an Iranian missile last month and rendered inoperable. The command characterized the statement by the Iranian Revolutionary Guard as a "false and intimidation attempt aimed at hindering the passage of commercial vessels through the strait."

News Source: 12punto