14 September 2026 (Navroze Bureau) : Oil prices surged on Monday as fresh attacks across the Middle East intensified concerns over global crude supplies, while diplomatic efforts to stabilise shipping through the Strait of Hormuz suffered a setback.
Brent crude rose more than 3% to around $107.82 a barrel, while US West Texas Intermediate crude climbed to about $103.22, as markets reacted to renewed attacks on Saudi Arabia and vessels in the Gulf.
Fresh Attacks Raise Supply Concerns
The latest oil rally followed attacks by Houthi forces on Saudi Arabia and Iranian attacks involving vessels in the Gulf.
The developments have increased fears that the conflict could disrupt energy infrastructure and shipping routes that are crucial to the global oil market.
Saudi Pipeline Disruption Adds Pressure
A major concern for markets is the disruption to Saudi Arabia’s East-West oil pipeline, which provides an alternative route for transporting crude without using the Strait of Hormuz.
The pipeline has been damaged in attacks, raising concerns about Saudi Arabia’s ability to maintain exports if the outage continues. Reports indicate that the disruption could put as much as 4% of global oil supply at risk.
Hormuz Diplomacy Hits a Roadblock
The oil market was also affected by a diplomatic setback.
Oman postponed a planned meeting involving Iran and Gulf Arab states that was aimed at discussing arrangements for shipping through the Strait of Hormuz. Oman cited the need to build consensus, while regional disagreements complicated the proposed framework.
The postponement has raised concerns that a diplomatic solution to the shipping crisis could take longer than expected.
Why the Strait of Hormuz Matters
The Strait of Hormuz is one of the world’s most important energy chokepoints. Disruptions there can quickly affect crude shipments, tanker costs and global fuel markets.
Although efforts have been made to maintain shipping, traffic through the waterway remains affected by security risks and the wider conflict.
Shipping Costs Also Rising
The impact is extending beyond crude prices.
Growing risks around the Strait of Hormuz and Bab el-Mandeb are making oil transportation more expensive and complicated. Tankers are facing higher costs and longer alternative routes, adding pressure to global trade.
Markets Brace for Higher Inflation
A sustained oil price above $100 could increase fuel and transportation costs in economies that depend heavily on imported crude.
Higher energy prices can feed into inflation by raising the cost of transportation, manufacturing and other energy-intensive activities. This is also increasing pressure on central banks as they assess the economic impact of the Middle East conflict.
Global Energy Market Remains Vulnerable
The latest surge demonstrates how quickly geopolitical developments can reverse oil-market expectations.
Oil prices had recently eased on hopes of progress in Hormuz diplomacy, but fresh attacks and the postponement of talks have pushed risk premiums higher again.
What Markets Are Watching
Traders are now closely watching whether Saudi Arabia can restore the damaged pipeline, whether shipping through Hormuz improves and whether Iran and Gulf states can revive diplomatic discussions.
Any further attacks on energy infrastructure or shipping could trigger another sharp move in crude prices.