Global oil prices surge amid Saudi Energy attacks and Strait of Hormuz Shutdown

Oil prices increased early Friday after attacks on Saudi energy infrastructure and the ongoing closure of the Strait of Hormuz. This comes despite a fragile truce between the United States and Iran. Brent crude rose 83 cents, or 0.87 percent, to $96.75 a barrel as of 0100 GMT. US crude futures climbed $1.04, or 1.06 percent, to $98.91 a barrel.

Key Highlights

• Oil prices rose after attacks on Saudi energy sites and Strait of Hormuz closure
• Brent crude reached $96.75 a barrel while US crude futures hit $98.91 a barrel
• Saudi output dropped by 600000 barrels per day and 50 Gulf assets were damaged

Market Response and Ceasefire Doubts

Market analyst Tony Sycamore from IG noted that relief from President Trump's two-week ceasefire announcement faded quickly. Doubts remain about the ceasefire's effectiveness. Iran and the US agreed to a two-week ceasefire on Tuesday, brokered by Pakistan. However, fighting continued after the announcement.

Sycamore said market attention is focused on tanker flows through the Strait of Hormuz. Observers are watching for changes before peace talks in Pakistan scheduled for Friday. Analysts believe Pakistan will try to secure a more lasting peace deal but may lack enough leverage to reopen the strait.

Strait of Hormuz and Oil Supply Impact

Iran wants to charge fees for ships passing through the Strait of Hormuz under a peace agreement, according to a Tehran official. Western leaders and the UN's shipping agency have opposed this proposal. The conflict, which began on February 28 after US and Israeli air strikes on Iran, has effectively shut down this key route for oil and gas flows.

John Paisie, president of Stratas Advisors, said Brent prices could reach $190 a barrel if flows through the Strait of Hormuz remain restricted. If Iran allows more oil to pass, prices may moderate but will stay above pre-war levels.

Saudi Output and Infrastructure Damage

Recent attacks have cut Saudi Arabia's oil output by about 600,000 barrels per day. Throughput on the kingdom's East-West Pipeline has dropped by 700,000 barrels per day, according to the Saudi Press Agency. JPMorgan analysts said this marks a shift from isolated disruptions to a measurable supply shock.

Drone and missile strikes have damaged around 50 infrastructure assets in the Gulf since the conflict began. About 2.4 million barrels per day of oil lubricants refining capacity have been taken offline, JPMorgan reported. The situation continues to affect global oil markets as peace talks approach.

Also Read: Oil prices slide after US–Iran ceasefire, easing economic pressure on India

CarBike 360 Says

​The sudden spike in oil prices underscores the fragility of global energy supply chains amid rising geopolitical risks. As countries brace for potential economic repercussions, stabilizing the situation in the Middle East becomes crucial to restoring market confidence and preventing further volatility in oil trade and pricing worldwide.