Oil rises amid disruptions to Saudi Arabia's exports
In Australia, futures point to a possible rise of about 0.3% in the ASX 200 index after it fell to a three-month low. The Australian dollar held near 71.3 US cents, ABC News Australia reports.
Decline in US indexes
On Wall Street, the sell-off continued amid another surge in oil prices. The Dow Jones index fell by 0.6%, the S&P 500 by 0.5%, and the Nasdaq Composite by 0.8%.
According to sources in the shipping industry, oil loading at Saudi Arabia's Yanbu export hub on the Red Sea was suspended. Riyadh also cancelled some cargo deliveries to European clients, heightening concerns about prolonged disruptions on an important oil export route.
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Surge in oil prices
Brent crude futures rose by 2.6% to $108.39 per barrel. West Texas Intermediate futures increased by 4% to $105.45 per barrel.
According to ABC News Australia, Yanbu gained particular importance for global supplies after the Strait of Hormuz was closed as a result of the US and Israel's war with Iran. Saudi Arabia had been sending oil westward via the approximately 1,200-kilometre East-West pipeline to Yanbu in order to export it through the Red Sea. The outlet also reports that attacks by Yemen's Houthis, whom it describes as linked to Iran, on the pipeline on Friday forced the kingdom to close a key export route.
