Oil Nears $110 a Barrel as Strait of Hormuz Tensions Shake Global Market
Mian Nadeem
Published September 13, 2026 | 06:12 PM
A vessel attack and the shutdown of a Saudi oil pipeline have deepened global supply concerns, creating fresh challenges for Pakistan and the wider world.
DUBAI/LONDON, (UrduPoint / Pakistan Point News – 13th Sep, 2026)
War in the middle East and rising tensions in the Strait of Hormuz have placed the global oil market under renewed pressure. Brent crude reached nearly $110 a barrel during the week and closed at $104.61 on Friday. Amid persistent supply concerns, Brent prices rose by more than 8% in one week.
Fresh concerns emerged on Sunday after a British maritime agency reported that a vessel passing through the Strait of Hormuz was hit by a projectile. A fire broke out on board and the crew was safely evacuated. Meanwhile, Iran’s state broadcaster reported that an Iranian commercial vessel was targeted near southern Iran, leaving one person dead and three injured. It was not immediately clear whether the two incidents were linked to the same attack or were separate events.
The biggest new threat to the global oil market is the shutdown of Saudi Arabia’s East-West Oil Pipeline. Saudi Arabia temporarily closed the key pipeline after a drone attack. According to Reuters, the approximately 1,200-kilometre pipeline has the capacity to transport 4 million to 5 million barrels of oil per day toward the Red Sea, equivalent to around 4% to 5% of global oil supplies.
Sources said that if the pipeline is not restored within a few days, Saudi Arabia will have limited stocks available to continue exports through its maritime terminals. Reuters, citing some industry sources, reported that repairs could take several weeks, although the restoration timeline remains uncertain.
Oil and gas shipments through the Strait of Hormuz have already been severely affected by the war. Industry sources said oil traffic through the strait has fallen significantly compared with pre-war levels. Reuters reported that around 22 million barrels of oil per day were supplied from the Middle East before the war, whereas only approximately 6 million to 9 million barrels per day are now being transported through the Strait of Hormuz.
According to the International Energy Agency, Saudi Arabia’s oil production fell to 6.2 million barrels per day in August, among the lowest levels recorded in more than three decades. An estimated decline of approximately 5.7 million barrels per day in global oil supplies this year has also been reported.
Higher global prices could directly affect Pakistan’s import bill, petroleum products, electricity, transport and inflation. The Pakistani government has already increased the price of petrol by Rs5.02 per litre and high-speed diesel by Rs5.28 per litre from 12 September. Under the new prices, petrol costs Rs375.82 per litre and high-speed diesel.
