Middle East oil supply risks intensified as shipping through the Strait of Hormuz remained severely depressed and Saudi Arabia’s key alternative export pipeline was shut following drone attacks.

Ship traffic through the Strait of Hormuz has fallen sharply as tanker attacks and escalating Middle East hostilities deter commercial shipping.

Houthi forces have seized Perim Island, threatening the vital Bab el-Mandeb Strait shipping lane. This development occurs as the Strait of Hormuz faces severe disruptions,…