Oil Prices Surge as Houthis Blockade Saudi Tankers

Global oil prices rose sharply this week, with Brent futures increasing 13.5% and West Texas Intermediate climbing 10.9%. The surge follows coordinated disruptions in two major energy corridors.

In the Red Sea, Iran-aligned Houthi rebels struck two Saudi oil tankers and declared a naval blockade on Saudi Arabia. These actions sparked immediate fears that the Bab el-Mandeb shipping route would be closed. Donald Trump, President of the United States, responded by vowing to hold Iran responsible for further attacks after Iran reportedly pressed the Houthis to close the gateway following the collapse of a truce with the U.S.

Simultaneously, the Government of Kazakhstan announced temporary production cuts after suspected Ukrainian drone attacks forced the closure of its primary Black Sea export terminal. The Caspian Pipeline Consortium suspended loadings at the terminal, disrupting a route that accounts for approximately 2% of the global daily crude supply.