Global oil prices are set to end the week with a significant rise, driven by Houthi attacks on tankers in the Red Sea and a temporary reduction in Kazakhstan's oil output, reports infohub.kz.
On Friday, Brent crude futures fell 72 cents (0.72%) to $99.97 per barrel, but are on track for a weekly gain of about 13.5%. U.S. West Texas Intermediate (WTI) crude futures dropped 70 cents (0.76%) to $91.49 per barrel, with a weekly increase of 10.9%.
The day before, prices surged: Brent jumped 7% and WTI rose 6.2%, briefly surpassing $100 per barrel for the first time since May. The trigger was claims by Iran-backed Houthis that they attacked two Saudi oil tankers in the Red Sea. Investors fear further escalation could close the Bab el-Mandeb strait, a key global shipping route for oil connecting the Red Sea to the Indian Ocean. In terms of global oil supply importance, this route is second only to the Strait of Hormuz.
U.S. President Donald Trump said Iran would be "held accountable" for any further attacks. Earlier, the Houthis declared a naval blockade of Saudi Arabia, forcing the kingdom to divert some oil exports via pipelines to reduce reliance on sea shipments through the Strait of Hormuz. Reports indicate Iran is also pressuring the Houthis to block the Bab el-Mandeb if the U.S. continues strikes on Iranian energy infrastructure after a temporary truce between the two countries collapsed.
"The noose around global energy supply routes is tightening again," said Tony Sycamore, an analyst at IG.
Additional support came from Kazakhstan. The country's Energy Ministry said oil companies had temporarily cut output after suspected Ukrainian drone attacks halted the main export terminal on the Black Sea. According to industry sources, the Caspian Pipeline Consortium (CPC) stopped receiving Kazakh oil on Tuesday after loading at the terminal was suspended. The CPC system handles about 2% of global daily crude supplies.
Kazakhstan's Energy Ministry did not specify the scale of the output cut. However, one source said production at the country's largest oil field had more than halved.