Saudis Form Maritime Coalition Amid Middle East Disruptions
Oil prices remain supported near $90 a barrel despite an expected weekly loss of around 8%, driven by ongoing disruptions in the Strait of Hormuz and Red Sea. Saudi Arabia is leading efforts to form an international maritime coalition against Houthi attacks, with 13 countries joining as founding members. The initiative aims to secure shipping lanes amid continued threats from Iran-backed groups. Meanwhile, BP (NYSE:BP) has announced plans to sell its UK North Sea operations due to high taxes and a deteriorating investment environment. In parallel, drone strikes have impacted key energy infrastructure in Egypt’s LNG gateway at Damietta port and disrupted oil loadings by the Caspian Pipeline Consortium following further attacks. Additional supply chain challenges include critically low water levels on Germany's Rhine River disrupting fuel transport and South Korea exploring imports of Venezuelan crude as an alternative to Middle East sources. These developments highlight growing global energy security concerns.
Topics: BP exit from North Sea geopolitical tensions oil prices shipping disruptions