On September 13, tensions escalated in the Middle East due to new strikes on Saudi Arabia and ships in the Gulf, exacerbating concerns over global energy supply disruptions. These incidents followed a recent attack on a Saudi oil pipeline and advances by Yemen’s Houthis, leading oil traders to anticipate rising prices once markets reopen. The British maritime security agency reported that a vessel was hit by a projectile in the Strait of Hormuz, resulting in a fire and necessary evacuation. Iran confirmed casualties from a similar attack on one of its commercial vessels.
In Saudi Arabia, damage from cross-border Houthi strikes was reported, affecting homes and a mosque in the Jazan province. The attacks have raised alarms in southern cities, culminating in drone strikes that impacted a crucial oil pipeline stretching 1,200 kilometers across the Arabian Peninsula. This pipeline is vital for transporting Middle Eastern oil, circumventing the Strait of Hormuz, which is critical for global oil transit.
As oil prices surged above $100 a barrel for the first time since July, diesel fuel prices in the U.S. hit record highs. Reports indicated that Saudi Arabia might manage exports for only a few days if the pipeline remains offline, risking up to 4% of global oil supply. In a backdrop of stalled peace talks, Iran and Gulf states had planned to meet in Oman to discuss shipping routes but postponed the meeting for consensus. The ongoing conflict puts Washington in a challenging position regarding its support for Saudi allies while avoiding deeper military engagement.
