Global oil prices rose sharply on Tuesday as markets faced renewed concerns over crude supplies following attacks on Saudi Arabia’s energy infrastructure and growing uncertainty surrounding strategic oil transportation routes in the Middle East.

Brent crude, the international benchmark, climbed as high as $108.43 a barrel, while U.S. West Texas Intermediate (WTI) reached $104.21 before giving back part of its gains. Reuters reported that oil markets remain close to multi-month highs as investors assess the potential duration and scale of supply disruptions.

A major source of concern is Saudi Arabia’s East-West Pipeline, a key system that transports crude from the kingdom’s eastern oil-producing regions to Yanbu on the Red Sea, allowing exports to bypass the Strait of Hormuz. Recent attacks disrupted the pipeline and raised concerns over Saudi Arabia’s ability to maintain crude exports.

According to Reuters, the disruption could put up to 4% of global oil supply at risk. Goldman Sachs warned that if the outage continues for several weeks and alternative routes remain constrained, Brent crude could rise toward $120 and potentially $130 a barrel.

The situation is also affecting traffic through the Strait of Hormuz, one of the world’s most important energy corridors. Preliminary shipping data showed a significant decline in vessel traffic through the waterway, adding to uncertainty over global crude flows.

Higher oil prices are also increasing pressure on financial markets. Rising energy costs could reinforce inflationary pressures and contribute to higher government bond yields as investors assess the potential economic consequences of a prolonged energy shock.

The latest developments have placed oil markets at the center of global economic concerns. A prolonged disruption could push up fuel, transportation and production costs worldwide, while governments, producers and traders monitor developments across the Middle East.

For now, the market remains highly sensitive to any new attacks, changes in shipping through the region and signs of whether Saudi Arabia can restore disrupted export capacity.