International crude oil prices rose by over 2% in Asian trading on Monday (September 14th). Prior to this, Saudi Arabia was once again attacked on Sunday, and there was another ship attack in the Persian Gulf.
As of 11:13 p.m. Greenwich Mean Time on Sunday night (7:13 p.m. Eastern Time on Sunday), the global benchmark Brent crude oil futures price rose by $2.90, an increase of 2.77%, to $107.51 per barrel. The U.S. benchmark West Texas Intermediate (WTI) crude oil futures price rose by $2.27, an increase of 2.27%, to $102.32 per barrel.
Saudi official media released a video on Sunday showing damage to some houses and a mosque, stating that this was the result of an attack by the Houthi militia in Jazan province in southern Saudi Arabia. The Houthis claim to have also attacked a Saudi military base in a neighboring province.
The United Kingdom Maritime Trade Operations (UKMTO), under the British military, also stated on Sunday that a ship was hit by missiles in the Strait of Hormuz, causing a fire and forcing crew members to evacuate.
Iran reported that an Iranian commercial vessel was attacked near its coastal waters on Sunday, resulting in one death and four crew members wounded.
The rise in oil prices on Monday was expected. Last Thursday, a drone launched from Iraq damaged the East-West Pipeline in Saudi Arabia, leading the Saudi government to close this crucial oil transportation route. Saudi Arabia has not disclosed the extent of the damage to the pipeline or how long it will remain closed.
The pipeline in Saudi Arabia can transport 7 million barrels of crude oil per day and has played a key role in alleviating oil supply disruptions following the Iran war. Stretching across Saudi Arabia from east to west, the pipeline connects the oil-producing regions near the Persian Gulf with the export terminals along the Red Sea coast.
As Iran and the U.S. vie for control of the Strait of Hormuz, Saudi Arabia has relied on this pipeline to export oil from the Gulf region.
Gulf countries and Iran were scheduled to hold a diplomatic meeting in Oman on Monday to discuss the situation in the Strait of Hormuz, but following the attack on the East-West Pipeline in Saudi Arabia, the Omani Foreign Minister announced the postponement of the meeting.
(This article referenced reporting from Reuters)