Overview
- Recent strikes that forced Saudi Arabia to close its East–West pipeline and Houthi operations near the Bab el‑Mandeb have removed key bypass routes for Persian Gulf exports and further constrained tanker traffic.
- Global crude traded above $100 per barrel in recent sessions as the pipeline closure and shipping attacks cut available supply for refiners that are already running near capacity.
- U.S. retail fuel reached fresh highs, with the national gasoline average around $4.31 per gallon and diesel at a record roughly $6.23 per gallon, driving higher costs for freight and food deliveries.
- Monday’s security actions included CENTCOM saying U.S. forces destroyed five Iranian oil carriers, and some governments have passed higher international prices to consumers, such as Pakistan’s fuel price increase effective Sept. 15.
- Analysts warn the shock will feed inflation and could keep interest‑rate pressure high this winter, while short‑term relief will depend on de‑escalation, repaired export routes and rebuilding low inventories.