Middle East energy crisis drives oil prices and shipping costs higher

oil supply disruption Strait of Hormuz crude oil prices shipping costs Middle East conflict

Global energy markets are facing significant volatility due to escalating tensions in the Middle East. Commercial shipping through the Strait of Hormuz has dropped to single digits, with only four vessels recorded crossing on Tuesday, a sharp decline from previous averages. Meanwhile, the Bab el-Mandeb strait saw 22 vessels pass through.

Oil prices have surged, with Brent crude trading above $107 per barrel and WTI above $103. Some actual oil shipments in Europe have exceeded $130 per barrel. These price hikes are driven by supply fears following an attack on Saudi Arabia’s East-West Pipeline, which has disrupted loading at the Yanbu port and forced the cancellation of late September shipments to Europe. Additionally, Libya has suspended operations at three oil fields due to security force protests.

Shipping costs are also reaching historic highs. The cost to charter a Very Large Crude Carrier (VLCC) from the US Gulf Coast to China hit a record $44.8 million. Analysts from Goldman Sachs warn that continued attacks on oil infrastructure could potentially push Brent crude prices above $120 per barrel.

Entities

Bab el-Mandeb · East-West Pipeline · Goldman Sachs · Houthi · Iran · Libya · Saudi Arabia · Strait of Hormuz

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Houthi forces launched dozens of missiles and drones against the Khamis Mushait military air base in Saudi Arabia. www.ertnews.gr
[○ 1 SOURCE] The Saudi East-West Pipeline previously transported approximately 4 million barrels of oil per day. www.reporter.gr
[○ 1 SOURCE] Only 4 commercial vessels crossed the Strait of Hormuz on Tuesday, down from 10 the previous day. www.ertnews.gr
[● 2 SOURCES] Twenty-two ships crossed the Bab el-Mandeb strait. www.businessdaily.gr · www.naftikachronika.gr
[● 4 SOURCES] Only 4 commercial vessels crossed the Strait of Hormuz on Tuesday, compared to 7 on Monday. www.businessdaily.gr · www.naftikachronika.gr · www.newsbeast.gr · www.cnn.gr
[○ 1 SOURCE] Gulf Arab states have postponed scheduled talks with Iran regarding the operation of the Strait of Hormuz. www.ertnews.gr
[● 2 SOURCES] Brent crude prices are above $107 per barrel and WTI is above $103 per barrel. www.reporter.gr · www.fxstreet.cz
[● 3 SOURCES] The Saudi East-West Pipeline has been hit, disrupting its operation. www.reporter.gr · www.fxstreet.cz · warszawawpigulce.pl
[○ 1 SOURCE] Chartering costs for a VLCC from the US Gulf Coast to China reached a record $44.8 million. www.alborsaanews.com
[● 2 SOURCES] Libya suspended operations at three oil fields due to security force protests. www.fxstreet.cz · s.alwakeelnews.com
[○ 1 SOURCE] Permanent damage to oil transmission infrastructure could cause an unprecedented global rise in fuel prices. warszawawpigulce.pl
[○ 1 SOURCE] Goldman Sachs analysts suggest attacks on oil infrastructure could push Brent crude prices above $120 per barrel. www.fxstreet.cz