Brent Crude Nears $109 as Saudi Pipeline Attack and Houthi Strikes Deepen Supply Crisis

Brent Crude Nears $109 as Saudi Pipeline Attack and Houthi Strikes Deepen Supply Crisis

Published September 16, 2026 · Finance-Solutes.com Markets Desk

Oil prices pushed higher again on September 15. Saudi Arabia was reported to have cancelled a batch of crude shipments. It is the latest sign that a drone strike on the kingdom’s key export pipeline is doing lasting damage. West Texas Intermediate (WTI) settled at $105.83 a barrel, up 4.4% on the day. That is its highest close since mid-May. Brent crude, the international benchmark, rose 2.9% to $108.75 and traded above $109 intraday. Both benchmarks are now up more than 20% for the month.

Trade sources told Reuters that Saudi Arabia notified European customers about the cancelled September cargoes. It is a direct consequence of the East-West pipeline shutdown. Riyadh has called the closure a “precautionary measure.” It has not given a damage assessment or a firm repair timeline. The pipeline normally carries up to 7 million barrels a day. It runs from the Eastern Province to the Red Sea port of Yanbu. A drone attack originating from Iraq damaged it last week.

Investor takeaway: Saudi Arabia’s main bypass route around the Strait of Hormuz is now offline. Oil markets are pricing in the risk that supply losses run deeper and longer than officials suggest. Energy and defense-linked names are likely to stay in focus while the pipeline remains shut. Brent’s move above $108 keeps Goldman Sachs’ upside scenario of $120 a barrel firmly in play.

US Energy Secretary Points to a Short Disruption

US Energy Secretary Chris Wright spoke to CNBC on September 15. He said he expects the pipeline back in operation within days. He called it “a brief and temporary interruption.” Saudi Arabia is routing more crude through the Strait of Hormuz in the meantime, with US military support. His comments contrast with Associated Press reporting. That report cited regional officials saying the pipeline could stay largely offline for several weeks.

Goldman Sachs: Risk of a $120 Brent Scenario Is Rising

Goldman Sachs said the infrastructure attacks raise the odds of its more bearish supply outcome. “The attacks on oil infrastructure mark a meaningful escalation of the conflict,” senior commodity strategist Yulia Zhestkova Grigsby wrote in a note. “They increase the probability of our price upside scenario, where Brent exceeds $120.” Saudi Arabia had already redirected part of its exports through the Red Sea. The US and Iran continue to contest control of the Strait of Hormuz. Under normal conditions, the strait handles roughly a fifth of global oil shipments.

Disruptions Are Spreading Beyond Saudi Arabia

The supply picture is worsening on several fronts at once. In Libya, the state oil company has suspended operations at two oilfields and a pumping station. Ongoing protests are the cause, according to Reuters. In Yemen, Iran-backed Houthi militants carried out fresh strikes on Saudi Arabia this week. They used drones and ballistic missiles. The targets were the cities of Khamis Mushait, Abha, and Taif, according to a spokesperson for the Saudi-led military coalition.

Security in the Strait of Hormuz also remains unsettled. At least two tankers have been attacked since the weekend, based on incident reports from the UK Maritime Trade Operations centre. On September 15, US Central Command disputed a claim by Iran’s Revolutionary Guard Corps. Iran said the Panama-flagged tanker El Gaia had struck a naval mine in the strait. Centcom said the vessel was instead hit by an Iranian missile the previous month. It was struck again by a drone over the weekend. Centcom accused the IRGC of spreading a “false claim” meant to intimidate commercial shipping.

Why This Matters for Your Portfolio

• Energy exposure is a two-way trade. Sustained high oil prices squeeze consumer and transport-heavy sectors while benefiting energy producers and related equities.
• Watch the repair timeline, not just the headlines. Washington says “days.” Riyadh’s framing suggests “weeks.” That gap is itself a source of volatility.
• Shipping-route risk is now multi-front. Hormuz, the East-West pipeline, and Libyan output are all in play at once. That reduces the market’s usual buffers against a single disruption.
• Diversification beats prediction. Forecasts range from a quick fix to Goldman’s $120 upside case. Position sizing and hedging matter more than betting on one outcome.

Disclaimer: This article is for informational and educational purposes only. It does not constitute financial or investment advice. Oil prices are highly volatile. They can shift significantly between publication and the moment you read this. Always check live pricing before acting on any figures here. For personalized guidance, Finance-Solutes.com’s free courses and expert advisors can help translate market events like this into a strategy that fits your own portfolio.

Source: Vietstock, Reuters, CNBC, Associated Press, US Central Command

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