Oil Prices Surge as Saudi and Libyan Supplies Drop

Global oil prices surged on September 15, 2026, driven by critical supply disruptions in Saudi Arabia and Libya. Government of Saudi Arabia shut its East-West pipeline and suspended oil loadings at the Red Sea port of Yanbu following drone and missile attacks. While the kingdom attributed the pipeline damage to Iraqi militia, other reports linked the strikes to Iran-backed Houthi forces, who also targeted the Khamis Mushait military airbase. The pipeline is essential for bypassing the Strait of Hormuz, where traffic has plummeted due to the ongoing U.S.-Iran war.

Simultaneously, Libya's National Oil Corporation suspended operations at three oil fields after the Petroleum Facilities Guard closed a valve on the Hamada-Zawiya pipeline. These combined events pushed Brent crude to approximately $108.75 and West Texas Intermediate to $105.83 per barrel. In China, yuan-priced crude futures hit a record high of 929.4 yuan per barrel.

U.S. Energy Secretary Chris Wright stated the Saudi pipeline outage "will be measured in days," though UK authorities warned it could remain mostly shut for six weeks. The disruptions have forced European buyers, such as Poland's Orlen, to seek alternative sources from the North Sea and Kazakhstan. Market volatility is further compounded by depleted strategic reserves in the United States and ongoing energy infrastructure attacks between Russia and Ukraine, which have pushed diesel futures toward record highs.