Brent tops $107 on reported Red Sea supply squeeze

Brent crude topped $107 on reported Red Sea supply disruptions, putting attention back on one of the world’s most sensitive energy corridors. A regional report said Houthi forces had taken Perim Island, near the Bab el-Mandeb strait, while Saudi Arabia had shut its East-West oil pipeline.

The same report said crude inventories at Yanbu had fallen to seven days of cover, down to a level that would narrow Saudi export flexibility if the pipeline closure holds. The claims were presented in a single initial report and require official confirmation from the parties involved.

Perim and Yanbu tighten supply risk

Perim sits near the southern entrance to the Red Sea, where disruption can force tankers to reroute around Africa, adding time and freight cost to oil flows between the Middle East, Europe and North America. The Saudi East-West pipeline matters because it moves crude from eastern fields to the Red Sea port of Yanbu, giving Riyadh an export route that avoids the Gulf.

If Houthi control of Perim is confirmed and the Saudi pipeline remains shut, the immediate macro channel is higher energy prices feeding into headline inflation and freight costs. For Saudi Aramco, the pressure point would be export routing and inventory management at Yanbu. For refiners and shippers, the mechanism would be higher insurance, longer voyages and tighter prompt crude availability.

If the island claim is disputed or the pipeline reopens quickly, Brent’s move could narrow as physical supply fears ease. The next hard checkpoint is official confirmation or denial from Saudi and Yemeni authorities by September 14, 2026.