Oil prices extended their gains on Tuesday amid fresh reports of Houthi attacks on Saudi Arabia and Iranian operations against vessels in the Persian Gulf, with geopolitical tensions further tightening global energy supplies. Brent crude futures for November delivery advanced 1.25% to $107.00 per barrel, while U.S. West Texas Intermediate futures for October climbed 1.27% to $102.68 per barrel, according to CNBC.
The price movement came as Saudi Arabia shut down its critical East-West pipeline, which provides an alternative route bypassing the Strait of Hormuz. The closure followed drone attacks reportedly launched from Iraq that damaged the infrastructure, compounding existing supply constraints in an already tight market. According to Al Jazeera, the Saudi-led coalition operating in Yemen reported that Houthi forces launched a wave of ballistic missile and drone attacks into Saudi Arabia on Monday, resulting in injuries to 13 civilians.
Tensions escalated further in the Persian Gulf, where Iran's military claimed to have destroyed an advanced American drone over the Strait of Hormuz as part of ongoing operations targeting U.S. unmanned naval systems in the region. U.S. President Donald Trump stated on Sunday that the United States could escalate its campaign against Iran and potentially take control of Iranian oil resources.
Disputes over maritime incidents have also intensified in the strategic waterway. U.S. Central Command contradicted claims by Iran's Islamic Revolutionary Guard Corps regarding the Panama-flagged oil tanker El Gaia, stating that the vessel was struck by an Iranian missile last month and rendered inoperable.
CENTCOM characterized the Iranian claim as false, describing it as part of broader intimidation efforts against commercial shipping in the strait. Komal Sri-Kumar, president of Sri-Kumar Global Strategies, warned during CNBC's "Squawk Box Asia" that inflation pressures are likely to increase given the attacks on oil infrastructure and the closure of Saudi Arabia's East-West pipeline. Sri-Kumar noted that concurrent tariff tensions are expected to compound upward pressure on commodity prices and bond yields.
Source: CNBC
Source: cnbc.com