World
Hormuz shipping fears push Brent above $111
Shipping insecurity at a key oil chokepoint can raise fuel, freight and food costs worldwide, especially in import-dependent India.
Shipping insecurity at a key oil chokepoint can raise fuel, freight and food costs worldwide, especially in import-dependent India.
Oil prices are rising because attacks on Saudi Arabia and growing threats to tankers through the are making traders fear a wider supply shock. A Houthi strike on Riyadh’s airport reportedly killed 13 people and wounded more than 300. The also claimed attacks on sites and the , though some claims remain unverified. briefly reached about $112 a barrel, its highest since May, before swinging sharply as traders weighed fresh attacks against evidence that exports were still moving.2
The main risk is not yet proven, permanent damage to oil production. It is the possibility that mines, attacks and higher insurance costs slow shipping through Hormuz, which carries a major share of global oil. Estimates put recent flows well below normal, even as wider Middle Eastern exports recovered through alternative routes.1 That fear-driven premium can raise fuel, freight and food costs worldwide. India is especially exposed because it imports most of its crude, so costlier oil can widen its , weaken the rupee and force difficult choices over fuel prices.
Attacks on Saudi energy facilities reportedly reduced production capacity by about 600,000 barrels per day and throughput by about 700,000 barrels per day, while tanker movements through Hormuz also declined. The combined supply losses and transport risks contributed to higher oil-market volatility, but available evidence does not establish a permanent loss of all regional production capacity.
Kpler estimated Hormuz crude exports at about 8.5 million barrels per day in the week to October 7, roughly 40 percent below the . Other tracking indicated combined Middle East flows, including , had recovered to more than 24.5 million barrels per day in the week to October 18. The contrasting data separated lower traffic through one chokepoint from a complete collapse in regional oil exports.
reached $111.05 a barrel, its highest point since May, as traders responded to renewed claims involving Yanbu, Shaybah and Saudi airports alongside reports of attacks in the Gulf. The price increase captured fear of further disruption, higher insurance and slower tanker movements. Reports still did not independently confirm that the claimed Saudi strikes had caused a sustained reduction in production capacity.
data showed Gulf oil flows averaged 15.5 million barrels per day in September, the highest level since the war began, but only 2.9 million barrels passed through on October 11. Other estimates put flows at about 12.6 million barrels per day on October 13, below the roughly 15 million reported at the end of September. The figures indicated transport disruption and volatility rather than proof that most regional production had been permanently lost.
Iran and the United States issued competing statements about control of the waterway as attacks on vessels continued. said about 400 ships and 100 million barrels of oil had moved through Hormuz during the previous week. data also recorded 125 outbound and 129 inbound transits, showing that threats had disrupted confidence without producing a complete closure.
briefly reached about $110 a barrel, its highest level since May, as traders responded to the combined Saudi attacks and Hormuz shipping threats. The move reflected a before a fully confirmed physical supply shortfall. Intraday volatility increased as markets weighed attack reports against continuing tanker movements.
Reports documented multiple attacks on commercial vessels around the Gulf and , while Iran claimed that two tankers struck mines. The mine claims were not independently confirmed, but the incidents increased risks for tanker traffic and contributed to reduced movement through the area.
Reports of attacks near Saudi facilities, including Riyadh’s airport and an Aramco site, heightened concern about protecting energy infrastructure and maintaining . No confirmed loss of Saudi production capacity was established.
The Houthis said they attacked Saudi energy, airport and military targets, including an site in Yanbu, the , Riyadh’s King Khalid International Airport and Abha airport. Reports did not independently confirm the claimed damage, and an source said the Yanbu and Shaybah facilities were undamaged.
A attack hit Riyadh’s international airport, causing the deadliest assault in Saudi Arabia in more than a decade. The reported casualties raised fears that the conflict had reached a major civilian and strategic hub. The attack also increased concern that Saudi airports and energy infrastructure could be targeted together.