Global oil prices have surged, with Brent crude reaching its highest level in over five months, due to escalating tensions in the Middle East. The increase comes amid renewed concerns about potential disruptions to energy supplies following Houthi attacks in Saudi Arabia.

Brent crude futures rose by 0.7% to $113.96 per barrel, peaking at $114.72, a level not seen since May 4. Meanwhile, U.S. West Texas Intermediate (WTI) crude climbed 1.1% to $100.57 per barrel. Despite Brent’s gains, WTI is projected to see a weekly decline of around 0.8%, contrasting with Brent’s anticipated third consecutive weekly gain of nearly 4%.

The situation intensified after reports indicated that Saudi Aramco ordered the evacuation of its headquarters in Dhahran as hostilities between Saudi Arabia and Yemen-based Houthi forces intensified. Analysts warn that further attacks could severely impact oil shipments, exacerbating supply shortages. The uncertainty surrounding shipping routes, volatile oil flows, and rising freight costs have placed additional strain on the global energy market.

Concerns have also been raised about the security of the Bab el-Mandeb Strait, a crucial shipping route connecting the Red Sea with the Gulf of Aden. Prolonged disruptions here could delay energy deliveries and maintain elevated oil prices.

Adding to the supply worries, Libya has experienced a reduction in production following the shutdown of a pipeline valve connecting the Hamada and Tahara oilfields to the Zawiya port. Meanwhile, a Malta-flagged tanker carrying 40,000 metric tons of Russian diesel is en route to New York, as Russia has agreed to resume diesel exports to international markets, including the United States, in a bid to alleviate fuel-price pressures.

As developments unfold in the Middle East, the oil markets are expected to remain sensitive to the extent of shipping disruptions and the time required to restore affected energy operations.