Oil Surges Above $108 as Saudi Pipeline Attack Deepens Persian Gulf Supply Fears

·         Oil prices jumped: Brent crude rose to around $108 per barrel, up 3.2%, while WTI climbed to just under $103, up about 2.9%.

·         Saudi pipeline attack: A drone attack on a critical Saudi Arabian pipeline triggered fresh concerns about disruptions to Gulf energy supplies.

·         Pipeline shutdown: Saudi Arabia's Energy Ministry announced the pipeline would be closed as a precautionary measure following the attack.

·         Red Sea threat intensifies: The situation worsened after reports that Houthi forces seized a strategic Red Sea island and a port city, potentially creating further risks for regional shipping.

·         Strait of Hormuz disruption: Most shipping through the Strait of Hormuz has already been halted. Before the war, the strategically vital waterway carried up to one-fifth of global oil supplies.

·         Iran–Gulf talks postponed: A planned meeting between Iran and several Gulf countries affected by Iranian attacks during the war was indefinitely postponed, adding to geopolitical uncertainty.

·         US stock futures weaken: S&P 500 futures indicated a decline of slightly more than 0.5%, pointing to a weaker opening for US equities.

·         US gasoline prices: The national average remained around $4.31 per gallon, but prices have increased by approximately 16 cents in one week.

·         Gasoline sharply above pre-war level: US regular gasoline prices are now nearly 45% higher than before the war began.

·         Diesel hits $6.20: The average US diesel price reached $6.20 per gallon, approximately 65% higher than at the start of the war.

·         Delayed fuel-price impact: Gasoline prices generally lag crude-oil movements by several days, meaning further increases could emerge if the oil-supply disruption persists.

Key Takeaway

The combination of a Saudi pipeline shutdown, expanding Red Sea threats and continued disruption in the Strait of Hormuz is intensifying fears of a major Gulf energy-supply shock, pushing Brent toward $110 and keeping inflationary pressure on gasoline and diesel prices.

 

[ABS News Service/14.09.2026]

Oil prices jumped and stock futures fell slightly on Sunday on concerns that energy supplies from the Persian Gulf would be further diminished by a drone attack on a critical pipeline in Saudi Arabia.

The Saudi Arabian Energy Ministry said it was closing the pipeline as a precautionary measure, but the shutdown came after reports that the Houthi militia had seized a strategic Red Sea island and a port city, which could further choke shipping in the area. Already, most shipping in the nearby Strait of Hormuz, the narrow waterway between the Persian Gulf and the Gulf of Oman, has been halted.

Adding to the uncertainty in the region, a planned meeting between Iran and several Gulf Arab countries it has attacked during the war was indefinitely postponed on Sunday.

Oil prices are up.

·         The price of Brent crude, the global benchmark for oil, rose to about $108 a barrel, about 3.2 percent, when markets opened on Sunday.

·         West Texas Intermediate crude, the U.S. benchmark, was up a little under $103 a barrel, about 2.9 percent.

·         Investors and analysts are focused on the continued disruption to shipping in the Strait of Hormuz, the narrow waterway between Iran and Oman that is a vital trading route for oil and natural gas. Before the war as much as one-fifth of the world’s oil supply passed through it.

Stock futures dip slightly.

·         Futures on the S&P 500 pointed to a small decline, a little over half a percentage point, when stocks resume trading in the United States on Monday.

Gasoline prices are steady.

·         Gas prices held steady over the weekend, at a national average of $4.31 a gallon, according to the AAA motor club. But prices at the pump have risen by about 16 cents a gallon in the last week. Prices for a gallon of regular gas are now nearly 45 percent higher than they were before the war began.

·         Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.

·         The average price of diesel continues to rise. It was $6.20 a gallon on Sunday, up about 65 percent since the start of the war.