Oil Prices Near $100 as Saudi Attacks Heighten Global Supply Concerns

LONDON — Global oil prices moved sharply higher on Tuesday, with Brent crude approaching the $100-a-barrel threshold after attacks on Saudi energy infrastructure intensified concerns over disruptions to global fuel supplies.

Brent crude climbed to around $99 a barrel, while US West Texas Intermediate also recorded significant gains. The latest increase came after Houthi attacks struck energy facilities in southern Saudi Arabia, raising fresh concerns about the security of oil production and transport across the region.

The attacks reportedly affected facilities in several Saudi cities, including Jazan, where a major refinery was targeted. Saudi authorities said dozens of people were injured, while fires and operational disruptions were reported at some energy sites.

The renewed escalation has added to existing pressure on energy markets caused by disruptions around the Strait of Hormuz and continuing tensions involving the United States and Iran. Analysts have warned that a prolonged interruption to Gulf energy supplies could push oil prices substantially higher.

Goldman Sachs has warned that Brent crude could reach as high as $120 a barrel if shipping disruptions in the region intensify. However, prices have remained below the $100 level for much of the recent period as some oil continues to move through alternative routes and producers seek to mitigate supply shortages.

The rise in oil prices is also renewing concerns about inflation and interest rates. Higher energy costs can feed directly into household and business expenses, potentially complicating efforts by central banks to contain inflation.

In the United Kingdom, financial markets were already under pressure as the government faced sharply higher borrowing costs. The UK sold £4.25 billion of 30-year government bonds at a yield of 5.8168%, the highest level recorded since the Debt Management Office began its current records in 1998.

The combination of rising energy prices, elevated borrowing costs and geopolitical uncertainty is increasing the risk of further volatility across global financial markets, with investors closely monitoring developments in the Middle East and their impact on oil supplies.