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Jeddah, September 14, 2026 – Global oil markets jolted sharply on Monday after a drone strike forced the shutdown of Saudi Arabia’s East West pipeline, amplifying fears of supply disruptions across critical shipping lanes in the Middle East.
Brent crude climbed 2.77 percent to $107.51 per barrel, while West Texas Intermediate rose 2.27 percent to $102.32.
Both benchmarks had spiked more than three percent earlier in the session, extending last week’s rally that pushed prices above $100 for the first time since July.
The attack, claimed by Houthi militants, struck infrastructure in Jazan province, damaging homes and a mosque while also targeting a Saudi military base.
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Analysts estimate the pipeline closure threatens nearly four percent of global supply.
The incident coincided with escalating maritime risks a vessel in the Strait of Hormuz was hit by a projectile, forcing crew evacuation, while an Iranian commercial ship suffered casualties after being struck in its own waters.
In Bab el Mandeb, Houthis advanced onto Perim island, raising alarms over another chokepoint that channels up to five percent of global oil flows.
The timing is particularly sensitive. Talks in Oman aimed at easing tensions between Gulf states and Iran were postponed, leaving markets without a diplomatic safety valve.
“Unless negotiations deliver operational progress or the East West pipeline resumes swiftly, crude may extend gains toward $119.48,” warned Tony Sycamore of IG Markets.
His projection echoes broader concerns that geopolitical instability, rather than fundamentals, is now dictating price action.
The surge carries wide-ranging implications.
Rising energy costs threaten to reignite inflationary pressures just as central banks struggle to contain price growth.
Import dependent Asian economies such as Japan, South Korea, and Indonesia face swelling trade deficits as oil bills climb.
Shipping insurers are expected to raise premiums sharply for vessels transiting Hormuz and Bab el-Mandeb, adding to costs across global supply chains.
Policymakers are likely to revisit energy security strategies, with renewed urgency around diversifying supply routes and bolstering strategic reserves.
For traders, the market’s trajectory hinges on whether Saudi Arabia can restore pipeline operations quickly and whether regional diplomacy can stabilize shipping lanes.
Without resolution, the specter of $119 oil looms large, underscoring how fragile global energy flows remain in the face of targeted attacks and geopolitical brinkmanship.
