Brent Hits $108 as Saudi Pipeline Shutdown Deepens Supply Fears

Brent crude climbed to $108 per barrel earlier in the trading day before retreating to $107.22 at the time of reporting; West Texas Intermediate was trading around $102.66. The price rise followed news that a drone strike targeted Saudi Arabia’s East–West pipeline, stoking concerns that further damage could tighten already strained global supplies.

The East–West pipeline is a major artery with the capacity to move about 7 million barrels a day, and analysts warned the attack could remove roughly 4% of world crude flows if it is put out of service. ING commodity strategists said the scale and duration of any outage remain uncertain, but they noted sizable quantities of oil are still transiting the Strait of Hormuz and kept a baseline forecast of about $80 per barrel for Brent in the fourth quarter.

Reuters, citing unnamed sources, reported that Saudi Arabia’s Yanbu port on the Red Sea has only five to seven days of exportable oil on hand, and that Yemeni Houthi forces are extending their influence over the waterway. Diplomatic efforts also appeared to stall: a meeting planned to be hosted by Oman was canceled, according to the latest reports.

The geopolitical backdrop is contributing to market nervousness. U.S. President Donald Trump said on Sunday the United States could remain in Iran and “keep the oil,” comparing the situation to past involvement in Venezuela and saying gasoline prices would fall sharply once hostilities ended. With inventories thin at key Saudi facilities and diplomatic options faltering, traders and policymakers will be watching repair progress and shipping movements closely for signs of how long the disruption might last.