US-Iran war LIVE: Oil prices rise more than 3% after fresh Houthi strikes on Saudi Arabia

LONDON — Brent crude futures climbed to $108.23 per barrel at Monday’s market open on Monday, 14 September 2026, marking a 3.46 per cent increase before paring gains, according to market data compiled by Channel NewsAsia. Concurrently, US West Texas Intermediate advanced 3.15 per cent to $103.20 per barrel, as reported by Blockonomi. The overnight surge was catalysed by fresh Houthi drone and missile strikes targeting southern Saudi Arabia alongside projectile attacks on maritime traffic in the Persian Gulf, compounding acute energy supply fears triggered by the precautionary shutdown of Saudi Arabia’s primary East-West crude pipeline.

The convergence of infrastructure sabotage, maritime blockades, and stalled diplomatic channels has pitched global energy markets into severe disarray. With alternative export routes severed and maritime chokepoints facing unprecedented disruptions, Asian oil refiners are currently stranded waiting for clarity on crude cargoes scheduled for pickup at Saudi Aramco's Red Sea terminal in Yanbu, as reported by Livemint. The shockwaves extend far beyond trading floors, translating into immediate physical dangers for civilian populations in Saudi Arabia’s Jazan province, where state media footage revealed damaged homes and a mosque, and forcing commercial mariners to evacuate burning vessels in the Gulf.

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Infrastructure Sabotage and the East-West Pipeline Shutdown

The immediate physical catalyst for the latest price escalation is the indefinite suspension of Saudi Arabia’s East-West crude pipeline. State-owned Saudi Aramco halted operations along the corridor late Friday as a precaution following a drone strike that originated in Iraq, as detailed by Blockonomi. The pipeline serves as a vital strategic bypass, designed to carry up to 7 million barrels of crude per day from production fields near the Persian Gulf directly to export terminals on the Red Sea coast, thereby sidestepping the volatile Strait of Hormuz. The loss of this conduit threatens up to 4 per cent of global oil supply, according to reporting from Aaj TV and The Vibes.

Riyadh has not yet disclosed the specific extent of the structural damage or established an operational timeline for repairs, leaving international refiners without guidance. Iraqi authorities reported that passenger traffic resumed early Sunday at key border crossings such as al-Sheeb in Maysan province and Shalamcheh in Basra province after temporary closures, while an umbrella group of Iran-backed militias in Iraq formally denied responsibility for the drone launch, according to The Orange County Register.

Maritime Chokepoints and Falling Vessel Transits

The disruption on land is mirrored by an intensification of maritime hazards across the region's two primary oil transit arteries. Preliminary ship-tracking data showed that commodity vessel transits through the Strait of Hormuz collapsed to a single digit per day over the weekend, dropping well beneath the 10-day average of 14 daily transits reported by Livemint. The British maritime security agency UKMTO confirmed that a commercial vessel transiting the Strait of Hormuz was struck by a projectile on Sunday, causing a fire and forcing the crew to evacuate the burning ship, as noted by Channel NewsAsia and Blockonomi. Simultaneously, Iranian state-run media reported that an Iranian commercial vessel off Qeshm Island was struck, resulting in one fatality and multiple injuries among the crew, according to Aaj TV and The Orange County Register.

Further south, the security architecture governing the Bab el-Mandeb Strait has degraded further. Yemeni government and Houthi officials confirmed on Monday that insurgent forces had captured additional strategic islands in the southern Red Sea, including Perim Island, tightening their control over a maritime lane that has recently carried 4 to 5 per cent of global oil supplies, as noted by The Vibes and Livemint. Concurrently, the human toll of the widening conflict is compounding regional instability: the International Organization for Migration reported that more than 2,000 fleeing Yemenis have arrived across the water in Djibouti to escape the renewed fighting, according to The Orange County Register.

Diplomatic Paralysis and Divergent Stakeholder Rhetoric

Efforts to construct a diplomatic firewall around energy infrastructure suffered a major setback over the weekend. A high-stakes regional meeting scheduled to take place in Oman between Iran and other Persian Gulf powers — aimed at negotiating a secure passage agreement for the Strait of Hormuz, was abruptly postponed. Oman’s Foreign Minister, Sayyid Badr Albusaidi, announced via social media late Sunday that the talks were delayed "in the interests of consensus" following the Saudi pipeline attack, as reported by Channel NewsAsia and Livemint.

This diplomatic vacuum has coincided with sharply polarized rhetoric from military leadership. Brigadier General Majid Ibn al-Reza, the Acting Defense Minister of Iran, dismissed repeated warnings from Washington as lacking any operational value, asserting in state media that the Islamic Republic would operate with advanced technological capabilities should war resume, according to Livemint. Conversely, market analysts warn that the lack of institutional engagement leaves markets entirely exposed.

"Looking ahead, unless this week's talks in Oman produce something operational — or the East-West pipeline is brought back online quickly — the risk is that crude oil continues to extend its gains toward the $119.48 high of early March,"

Tony Sycamore, IG market analyst, via The Vibes and Channel NewsAsia

As international investors brace for upcoming monetary policy decisions from the Federal Reserve and the Bank of Japan amid accelerating consumer price pressures, the immediate trajectory of global energy markets remains tethered to unresolved security conditions in the Gulf. Market participants await definitive operational signals from Riyadh regarding the structural integrity of the East-West pipeline, alongside any indication from Omani mediators as to when regional de-escalation talks can be rescheduled before prices retest early-March highs, with outcomes dependent on whether upcoming diplomatic sessions in Oman yield operational frameworks or if Saudi Aramco restores pipeline throughput.