Brent hits $108 as Saudi pipeline attack tightens Gulf oil supply

Brent crude rose 3.3% to $108.04 per barrel by 0924 GMT, with WTI up a similar margin to $103.54. The move builds on a near-9% surge last week that took Brent above $100 a barrel for the first time since July, and it comes as US diesel prices pushed past $6 a gallon, prompting President Trump to call on Ukraine to stop striking Russian diesel facilities. For UK commercial buyers, this is now a multi-week pattern of upward pressure, not a single-day spike.

The immediate trigger is Saudi Arabia's decision to close its East-West pipeline after a drone strike, confirmed by Saudi officials and reported by the BBC. The pipeline lets Saudi Arabia route exports away from the Strait of Hormuz via the Bab el-Mandeb strait, and its closure puts up to 4% of global oil supply at risk. Bloomberg reported that industry sources expect the pipeline to remain offline for weeks, and that the Red Sea port of Yanbu holds only five to seven days of export stock. Separately, the British maritime security agency UKMTO confirmed a vessel in the Strait of Hormuz was hit by a projectile, catching fire and forcing a crew evacuation; Iran reported one death and four injuries on one of its own commercial vessels hit off its coast.

The chart below tracks Brent over the past six months, showing how this week's spike above $108 compares with the pre-July trading range.

What this means for UK buyers

Oil moves flow through to UK energy costs via freight, diesel, and gas-linked power pricing, and the compounding factor here is geographic: the Houthis' advance on the island of Perim tightens their grip on Bab el-Mandeb just as the Saudi bypass route is down. A planned meeting in Oman between Gulf states and Iran to de-escalate Strait of Hormuz tensions, due to take place on Monday, has been postponed, according to Omani Foreign Minister Badr Albusaidi. That removes a near-term off-ramp for the market and leaves risk premium embedded in forward pricing.

• Saudi East-West pipeline: closed indefinitely, up to 4% of global supply exposed
• Yanbu port stock: five to seven days of export cover remaining
• Strait of Hormuz: vessel fire, crew evacuation, diplomatic meeting postponed
• Bab el-Mandeb: Houthi forces advancing on Perim island
• US diesel: above $6/gallon for the first time

Global bond markets are already reacting: rising energy costs are feeding inflation expectations, and yields have hit new multi-year highs as a result. PVM analyst John Evans framed the ceiling risk bluntly: 'Unless we address both the wars affecting oil prices and the global refinery capacity issue, we are left wondering what can be done to counteract $120 Brent,' pointing to Russian refinery outages and falling stockpiles as compounding factors.

Watch the East-West pipeline restart timeline and any fresh word on the postponed Oman talks; either could shift Brent by several dollars within a single session, and both bear directly on fuel and gas-linked cost lines for any renewal being priced this quarter.