WS #15679
Saudi Arabia has extended the suspension of operations at Riyadh Airport following Houthi strikes, compounding existing disruptions to energy flows through the Strait of Hormuz. Concurrently, the IEA reported a massive 95 million barrel drawdown in global oil inventories during August, the largest since February. This combination of physical supply disruption and depleting buffers is driving oil prices higher and reinforcing the flight-to-safety trade, with gold breaking $4,200. The market is pricing in a sustained supply shock rather than a transient event.
Geopolitical Escalation and Energy Supply Shock
Saudi Arabia has extended the suspension of operations at Riyadh Airport following Houthi strikes, compounding existing disruptions to energy flows through the Strait of Hormuz. Concurrently, the IEA reported a massive 95 million barrel drawdown in global oil inventories during August, the largest since February. This combination of physical supply disruption and depleting buffers is driving oil prices higher and reinforcing the flight-to-safety trade, with gold breaking $4,200. The market is pricing in a sustained supply shock rather than a transient event.