Oil prices surged higher after drone attacks shut Saudi Arabia's East-West pipeline. The move arrived on the back of an attack on energy infrastructure. Diesel prices reached a new all-time high. That result added strain to the broader energy market. Supply fears from the Middle East continue to lift prices across the sector. A Houthi advance is putting key oil shipping routes under pressure. This development has heightened worries about global supply lines. Traders are assessing the fallout now. Despite these concerns, the Australian stock market (ASX) has shrugged off immediate impacts from higher oil and rate hike fears. The local bourse remained steady even as energy costs climbed. Investors are focused on the next moves in crude prices. The oil market may remain unstable while Middle East risks persist. Another large price swing cannot be ruled out. Energy markets are still tense after the latest escalation.