Oil prices climb as attacks, pipeline outage deepen Saudi supply concerns

Crude prices moved higher on Tuesday after strikes on Saudi energy facilities took the East-West Pipeline out of action, according to Business Recorder. By 1148 GMT, Brent had gained 21 cents to $105.89 a barrel, a rise of 0.2%, after touching $108.43 earlier in the day. US West Texas Intermediate climbed 0.89% to $102.29 a barrel, having reached $104.21 at its peak.

Tensions deepened after Houthi forces in Yemen announced fresh assaults on the kingdom on Monday, while Gulf Arab states put off planned talks with Iran. The Houthis claimed a barrage of missiles and drones aimed at an air base in Khamis Mushait, saying it was payback for Saudi airstrikes in Yemen. Riyadh attributed Friday's attacks to Iranian-backed fighters in Iraq, and those strikes disrupted a pipeline that carries crude around the Strait of Hormuz, which is blockaded.

Goldman Sachs described the attacks as a notable escalation and said they raised the chance of Brent topping $120 a barrel under a scenario where Gulf oil output in 2027 averages 4 million barrels daily beneath pre-war levels. Commodity vessel traffic through Hormuz fell to four on Monday from 10 a day earlier, Kpler data showed. Oman's Maritime Security Centre reported that the Panama-flagged tanker El Gaia is under tow toward a port in Oman after an engine room fire following an attack.