Oil prices rise more than 3% after fresh strikes in Saudi Arabia, Hormuz

Oil prices rose more than 3% on September 14 after new Houthi strikes on Saudi Arabia and an attack on a vessel in the Strait of Hormuz heightened concerns over global oil supplies.

Brent crude futures rose $3.21, or 3.1%, to $107.82 a barrel, while West Texas Intermediate (WTI) futures gained $3.17, or 3.2%, to $103.22 as of 03:40 GMT, Caliber.Az reports, citing foreign media.

The rise came after Saudi Arabia temporarily shut its East-West oil pipeline following a drone attack. The pipeline allows the country to bypass the Strait of Hormuz and reroute oil exports.

The disruption threatens up to 4% of global oil supply, according to Reuters. Industry sources said the port of Yanbu had enough inventory to cover five to seven days of exports.

Saudi state media released footage showing damage to homes and a mosque in the southern Jazan province, which it attributed to a Houthi attack. The Houthis also said they had targeted a Saudi military base in a neighbouring province.

In the Strait of Hormuz, a vessel was struck by a projectile, causing a fire and forcing its crew to evacuate, the British maritime security agency UKMTO said.

Iran said one person was killed and four crew members were wounded aboard an Iranian commercial vessel struck off its coast.

Meanwhile, Iran-aligned Houthi forces reached the strategic island of Perim on September 11, tightening their control over the Bab el-Mandeb Strait, another major oil transit route.

Oil prices rose by 8% last week, surpassing $100 a barrel for the first time since July.

Omani Foreign Minister Badr Albusaidi said on September 12 that a meeting between Gulf countries and Iran scheduled for September 14 in Oman to discuss the Strait of Hormuz had been postponed.

No peace talks have been held on the war, launched six months ago by the United States and Israel, since an interim agreement in June collapsed.

By Aghakazim Guliyev