Finance
Oil Prices Rise After Strikes on Saudi Oil Facilities
Published by Global Banking & Finance Review®
Posted on April 10, 2026
3 min readLast updated: April 10, 2026
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Oil prices rose on April 10 as attacks on Saudi oil infrastructure removed substantial supply, while continued closure of the Strait of Hormuz sustained a hefty risk premium amid fragile U.S.–Iran truce.
Oil Prices Climb After Saudi Strikes and Strait of Hormuz Shutdown
Market Reactions and Geopolitical Developments
By Colleen Howe
Oil Price Movements
BEIJING, April 10 (Reuters) - Oil prices rose in early trading on Friday following attacks on Saudi energy infrastructure, and as markets evaluated the risk premium from the ongoing closure of the Strait of Hormuz, despite a fragile truce agreed between the U.S. and Iran.
Brent crude futures gained 83 cents, or 0.87%, to $96.75 a barrel as of 0100 GMT. West Texas Intermediate futures were up $1.04, 1.06%, at $98.91 a barrel.
Market Sentiment and Analyst Insights
"The initial wave of relief following President Trump's two-week ceasefire announcement has quickly given way to underlying doubts," IG market analyst Tony Sycamore said in a note.
Ceasefire and Ongoing Conflict
Iran and the U.S. agreed on Tuesday to a two-week ceasefire brokered by Pakistan, but fighting was still taking place following the announcement.
Strait of Hormuz: Strategic Importance
"All eyes remain firmly on tanker tracker flows through the Strait of Hormuz for any signs of increased activity ahead of peace talks scheduled in Pakistan on Friday," Sycamore said.
Peace Talks and Negotiation Challenges
Analysts say Pakistan will try to push in the talks for a more durable peace agreement but may lack the leverage needed to compel the reopening of the key Strait of Hormuz.
Iran wants to charge fees for ships passing through the strait under a peace deal, a Tehran official told Reuters on April 7. Western leaders and the U.N.'s shipping agency have pushed back on the idea.
The crucial artery for oil and gas flows has been effectively shut down by the conflict, which began on February 28 when the U.S. and Israel launched air strikes on Iran.
Potential Impact on Oil Prices
Brent prices could reach $190 a barrel if flows through the Strait of Hormuz remain at the current level, said John Paisie, president of energy consultants Stratas Advisors.
"If Iran allows increasing flows the price of oil will be more moderated, but still well above pre-war levels."
Saudi Oil Infrastructure and Supply Disruptions
Attacks on Saudi Arabia's oil production capacity have cut the kingdom's output by around 600,000 barrels per day (bpd) and reduced throughput on its East-West Pipeline by 700,000 bpd, the Saudi Press Agency reported on Thursday.
Wider Gulf Infrastructure Damage
The announcement "shifts the narrative from episodic disruption to a measurable supply shock," JPMorgan analysts said in a research note.
Some 50 infrastructure assets in the Gulf have been damaged by drone and missile strikes over the nearly six weeks since the conflict started, and around 2.4 million bpd of oil refining capacity have been taken offline, according to JPMorgan.
(Reporting by Colleen Howe in Beijing; Editing by Sonali Paul)
Key Takeaways
- •Strikes on Saudi facilities cut about 600,000 bpd of output and disrupted East‑West pipeline flows, signaling a tangible supply shock (Reuters; EIA)
- •The Strait of Hormuz remains effectively closed, with production shut‑ins across Gulf states totaling several million barrels per day, keeping risk premia elevated (EIA; Goldman Sachs)
- •Analysts warn Brent could climb toward $150–$200 per barrel if closures persist, highlighting the fragile outlook and market sensitivity to renewed disruptions (Eurasia Group; Goldman Sachs)
Frequently Asked Questions about Oil prices rise after strikes on Saudi oil facilities
1Why did oil prices rise after the attacks on Saudi oil facilities?
Oil prices rose due to attacks that reduced Saudi oil output and supply concerns from the closure of the Strait of Hormuz.
2How much Saudi oil production was affected by the recent strikes?
Saudi Arabia's oil output was cut by around 600,000 barrels per day, with throughput on its East-West Pipeline reduced by 700,000 barrels per day.
3What is the significance of the Strait of Hormuz in the oil market?
The Strait of Hormuz is a crucial passage for global oil and gas flows. Its closure heightens supply risks and pushes prices higher.
4What could happen to oil prices if the Strait of Hormuz remains closed?
Analysts suggest Brent prices could reach $190 a barrel if the closure of the Strait continues and supply remains restricted.
5What impact did the truce between the U.S. and Iran have on oil markets?
While a two-week truce was agreed, continued fighting and uncertainty have kept oil markets volatile and prices elevated.
