Brent rises as Middle East supply concerns persist

Brent crude futures rose to $107.59 on Tuesday after the East-West pipeline was shut, keeping Middle East supply concerns elevated.

Data showed futures remained below Monday's intraday high as traders weighed the disruption against existing inventory buffers.

East-West pipeline shutdown

Officials said the Saudi East-West pipeline was taken offline following security disruptions, reducing flows from key eastern producing areas. Officials said recent Houthi territorial gains in Yemen had added to market unease by complicating shipping and export corridor security.

Market participants said the combination of the pipeline outage and regional unrest tightened prompt physical markets, particularly for cargoes heading to the Red Sea and Suez routes. Traders noted the market was pricing a higher risk premium for near-term deliveries even as benchmarks stayed below last session peaks.

Market participants will watch for an official update on the pipeline's status by September 18, 2026. Traders said that if the pipeline remains closed past that date, prompt cargo scheduling and refinery feedstock availability could face renewed strains, with implications for regional product flows and near-term price support.