Oil prices jump $2.90 as Mideast tensions and pipeline cuts deepen supply fears
Brent crude futures rose 2.77 percent amid renewed Houthi strikes on Saudi Arabia, Iranian vessel attacks, and the closure of a key Saudi oil pipeline threatening four percent of global supply.
Oil prices jumped more than two percent as Mideast tensions deepened supply fears. Brent crude futures rose $2.90, or 2.77 percent, to $107.51 per barrel on Monday. WTI futures gained $2.27, reaching $102.32 per barrel. Prices had initially risen over three percent at the market open before settling lower. These moves followed reports that new Houthi strikes hit Saudi Arabia and Iranian forces attacked ships in the Gulf. A vessel in the Strait of Hormuz was struck by a projectile, causing a fire and forcing evacuation. The British maritime security agency UKMTO reported one crew member died and four were wounded. Iran confirmed one death and four injuries aboard an Iranian commercial vessel near its coast. Saudi Arabia's state media released video footage of damage to homes and a mosque in the Jazan province attributed to Houthi attacks. They also claimed a military base was struck in a neighboring area. Earlier, Saudi Arabia cut off its East-West oil pipeline after a drone strike originating in Iraq. This infrastructure loss prevents the country from re-routing exports away from the Strait of Hormuz. Industry analysts note that the closure threatens up to four percent of global oil supply. Prince Faisal bin Farhan stated at the BRICS summit that Saudi national security and resources are non-negotiable. Sheikh Abdullah bin Zayed Al-Nahyan agreed during a phone call with Riyadh's minister, emphasizing a united Gulf stance against further regional escalation.
