Oil Surpasses $100, Gas Hits $1000: Houthis Close Ports and Pipelines

The global energy market is engulfed in an unprecedented geopolitical storm. U.S. military strikes on five major tankers carrying Iranian oil, combined with the Houthi seizure of a key port and a strategic island in the Red Sea, have sent global oil prices soaring toward triple digits again. Brent crude, the benchmark, surged to $104.6 per barrel within a week. The shutdown of the East-West pipeline—Saudi Arabia's only major alternative to the Strait of Hormuz—has become a critical problem for Riyadh. As fuel markets in the West and Europe burn, the EU's main locomotives, Germany and the Netherlands, have failed to fill winter reserves, pushing gas prices to $1000. What chain reaction has begun in the fuel market, why is diesel hitting record highs, and what energy clashes await the world before winter?

Oil price jumps past $104: Houthi blockade and Saudi pipeline shutdown

Tensions in the Middle East have triggered a genuine panic in commodity markets:

• Brent rose from $95.5 to $104.6: Following U.S. strikes on Iranian tankers and the crisis at the strategic Bab al-Mandab Strait, benchmark oil prices rose by over $9 in just one week;

• East-West pipeline paralyzed: Reuters reported smoke at Saudi Arabia's main East-West pipeline, which bypasses the Strait of Hormuz to reach the Red Sea. The Kingdom later officially confirmed the attack and the suspension of oil pumping;

• Mocha port and Perim island lost: The Houthis, who have declared a naval blockade on the Kingdom, seized the vital Mocha port and landed troops on Perim Island in the Bab al-Mandab, threatening total control over the world's most important oil artery;

• Hopes for a temporary agreement: Only reports from the Financial Times that Middle Eastern foreign ministers are negotiating with Iran to regulate shipping in the Strait of Hormuz are temporarily preventing prices from jumping even higher.

Diesel prices peak: Fuel crisis in the US and Europe

The rise in oil prices has primarily impacted refined products, especially diesel, hitting consumers' pockets:

• In the US, $1.58 per liter or $6 per gallon: Another anti-record in American history: the price of a gallon of diesel rose to $6, putting immense pressure on the transport system;

• Chronic records in Europe: In the Old Continent, diesel prices have been breaking records for several weeks;

• Double blow: As KCM Trade analyst Tim Waterer noted, maritime restrictions in the Persian Gulf and disruptions at Russian refineries are causing a diesel shortage, driving prices up even faster than crude oil.

Gas hits $1000: Germany and the Netherlands' 'fake' reserves

As autumn begins in Europe, gas market prices have flared up again:

• The $1000 barrier on the exchange: Prices for one-month delivery contracts at the Dutch TTF hub hit the psychological $1000 mark. Although they dipped slightly at the end of the week, quotes rose from $880 to $972;

• Germany and the Netherlands at risk: Although Brussels claims total reserves exceed 80 billion cubic meters, the situation is alarming—Europe's main economic power, Germany, and neighboring Netherlands have failed to store as much gas as they consumed last winter;

• Late autumn emergency purchases: By rushing to fill storage in September, these two countries are themselves driving up exchange prices through massive gas purchases;

• Coal market booming: Against the backdrop of rising gas prices, coal suppliers have also raised prices—the price of a ton of coal at the ARA hub rose from $138.4 to $140.

The global economy is facing a new and dangerous wave in oil and gas markets. The escalation of military conflicts in the Middle East and Europe's energy vulnerability increase the risk of fuel prices spiraling out of control during the autumn-winter season.

Do you think the expansion of war zones in the Middle East could push oil prices to $120-150 in the coming months? Can the EU and the US withstand this emerging fuel crisis?

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