Commodities
Home›Commodities›Energy›Oil faces renewed supply-route risk as Red Sea tension…
Oil faces renewed supply-route risk as Red Sea tensions escalate
Commerzbank said Brent fell 3.9% to USD96.78 last Friday but rose 9.9% for the week, with the Strait of Bab al-Mandab closure risk flagged as a key upside threat.
Oil prices have pulled back after sharp gains, but supply-route risks remain elevated as tensions in the Middle East continue to threaten shipping flows, according to Commerzbank commentary cited by FXStreet.
Commerzbank’s Charlie Lay said escalation in the Persian Gulf and the potential closure of the Strait of Bab al-Mandab could disrupt supply routes, with mounting risks also linked to emerging bottlenecks in refined products.
Lay warned that sustained disruption to Saudi export alternatives could renew upward pressure on oil prices, noting that Saudi Arabia has used Red Sea export infrastructure to help work around disruptions elsewhere.
The notes pointed to increased risks in the Red Sea, referencing Houthi missile and drone launches toward Saudi oil facilities in Jizan and Yanbu, and retaliatory strikes by the Saudi-led coalition in Yemen.