Oil prices rise after Saudi energy attacks

Oil prices moved higher on Friday, April 10, after drone and missile strikes hit Saudi Arabian energy infrastructure and as traders continued to focus on risks around the Strait of Hormuz. Brent crude futures rose by 83 cents, or 0.87%, to $96.75 a barrel, while West Texas Intermediate futures gained $1.04, or 1.06%, to $98.91 a barrel by 0100 GMT.

The price increase came even though a two-week ceasefire agreement between the United States and Iran was announced earlier in the week. Officials said the truce was brokered by Pakistan on Tuesday, but fighting continued after the announcement, leaving markets uncertain about how durable the arrangement will be.

Analysts said attention is centered on shipping activity through the Strait of Hormuz, a key route for global oil flows. They are watching tanker traffic for signs of increased movement ahead of peace talks scheduled in Pakistan, which market participants are treating as a near-term marker for whether tensions ease or remain elevated.

Saudi Arabia has reported measurable impacts from the attacks. According to the Saudi Press Agency, the strikes have cut the kingdom’s oil output by approximately 600,000 barrels per day (bpd) and reduced throughput on its East-West Pipeline by 700,000 bpd.

JPMorgan analysts described the disruptions as a tangible supply shock, pointing to the immediate loss of production and transport capacity. The same period has also seen broader damage across the region: since the conflict began on February 28, around 50 infrastructure assets in the Gulf have been damaged, taking approximately 2.4 million bpd of oil refining capacity offline.

For global markets, the combination of physical outages and uncertainty around maritime transit has kept risk pricing in focus. Energy consultants Stratas Advisors said Brent could reach $190 a barrel if flows through the Strait of Hormuz remain restricted, underscoring how sensitive prices are to sustained constraints on the route.

Key unknowns remain, including whether the ceasefire framework will hold in practice and whether tanker movements through the Strait of Hormuz normalize ahead of the planned talks in Pakistan. Market participants are also tracking the pace of repairs to damaged assets and whether the reported reductions in Saudi output and pipeline throughput persist.