"World oil prices" continue to surge, Brent crude surpasses $108, with Goldman Sachs indicating a possibility of exceeding $120.

"Global oil prices" surged more than 2% after Saudi Arabia's East-West pipeline remained shut down amid a new wave of attacks and a sharp drop in shipping through the Strait of Hormuz.

On September 15, 2026, at 3:54 PM, Reuters reported that oil prices rose more than 2% on Tuesday (September 15), with Brent crude surpassing $108 per barrel, following attacks on Saudi Arabia's energy infrastructure that left the East-West pipeline shut down, raising concerns that repairs to infrastructure and energy transport routes could take longer than expected.

Brent crude oil futures rose $2.50, or 2.37%, to $108.18 per barrel at 08:13 GMT, while US West Texas Intermediate (WTI) crude oil futures increased $2.46, or 2.43%, to $103.85 per barrel.

Concerns about oil supply have escalated after the Iranian-backed Houthi rebels in Yemen launched a new offensive against Saudi Arabia on Monday, while Gulf Arab states postponed planned talks with Iran amid stalled negotiations over the Strait of Hormuz.

Hamad Hussain, senior climate and commodities economist at Capital Economics, stated that the new Houthi attacks on Saudi Arabia could cause investors in the oil market to adjust their views on both the severity and duration of the conflict.

The Houthi group said it fired dozens of missiles and drones on Monday at an air base in Khamis Mushait, southern Saudi Arabia, targeting aircraft hangars, radar systems, runways, and ammunition depots in retaliation for Saudi airstrikes in Yemen.

The attack followed Friday's assault on Saudi Arabia, which the Riyadh government blamed on Iranian-backed militants in Iraq. The incident also halted operations on Saudi Arabia's East-West oil pipeline.

The East-West pipeline is crucial because it allows Saudi Arabia to export oil without passing through the blockaded Strait of Hormuz. Before the US-Israeli-Iran conflict on February 28, this route carried approximately one-fifth of the world's oil supply.

Oil buyers and traders estimate that Saudi Arabia could deplete its existing crude oil reserves for export within days if the East-West pipeline is unable to resume operations. Such a disruption to the pipeline could pose a risk to global oil supply by up to 4%.

Goldman Sachs stated that the damage from the latest attack may be more severe than initially estimated and could affect the remaining oil exports of approximately 2 million barrels per day through Yanbu. The latest assessments of repair time range from immediate to as long as eight weeks.

Goldman Sachs views the attack on oil infrastructure as a significant escalation of the conflict and increases the likelihood of Brent crude prices rising above $120 per barrel, especially if average oil production in the Persian Gulf countries remains approximately 4 million barrels per day below pre-war levels by 2570.

Meanwhile, the number of commodity ships passing through the Strait of Hormuz dropped to just four on Monday from ten the previous day, according to preliminary data from Kpler, further raising concerns about one of the world's most important energy shipping routes.

Hussain estimates that, if oil demand does not decrease or the amount of oil transported through the Strait of Hormuz does not increase, a multi-week shutdown of the East-West pipeline could push Brent crude prices closer to $130 per barrel.

On the Chinese side, official data indicates that oil refining volumes increased for the second consecutive month in August, driven by fuel exports after the Chinese government eased restrictions in mid-July.

Reference: www.reuters.com

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