The supply disruption coincides with significant territorial gains by Houthi rebels in Yemen. These forces have advanced toward key positions commanding the Bab al-Mandeb Strait, a critical maritime chokepoint for global oil transit. Investors are now retreating from energy sector equities, citing the immediate risk of demand destruction as record fuel costs force industrial and retail users to curtail activity.
In section Market Quotes
Oil Prices Surge as Pipeline Attacks Fuel Demand Fears
With U.S. oil futures climbing past $100 per barrel and diesel prices exceeding $6 a gallon, markets are bracing for a sharp contraction in consumption. The latest price spike follows targeted assaults on Saudi Arabia’s East-West pipeline, effectively choking off a vital bypass route for Persian Gulf crude exports.
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