Global oil prices rose by around 3% on Monday, with Brent crude climbing above $107 per barrel as fresh attacks on Saudi energy infrastructure and an incident involving a commercial vessel in the Strait of Hormuz intensified concerns over global oil supplies.
Brent crude futures rose by $2.93, or 2.8%, to $107.54 per barrel, while US West Texas Intermediate gained $2.88, or 2.9%, to reach $102.93 per barrel.
The latest rise came after Saudi Arabia temporarily shut its East-West oil pipeline following a drone attack. The pipeline is strategically important because it allows Saudi Arabia to reroute oil exports through the Red Sea and avoid the Strait of Hormuz.
The disruption has raised concerns over as much as 4% of global oil supplies. Industry sources said the Saudi Red Sea port of Yanbu had enough inventory to maintain exports for only around five to seven days.
Saudi state media also reported damage to homes and a mosque in the southern Jazan region following what it described as a Houthi attack. The Houthis separately claimed to have targeted a Saudi military base.
Meanwhile, a commercial vessel in the Strait of Hormuz was struck by a projectile, triggering a fire and forcing its crew to evacuate. Iranian authorities said one person was killed and four crew members were injured after an Iranian commercial vessel was hit off the Iranian coast.
Concerns are also growing around the Bab el-Mandeb Strait after Yemen's Houthis reportedly strengthened their presence around the strategic Perim island. The waterway has been carrying around 4% to 5% of global oil supplies in recent months.
Oil prices had already surged about 8% last week amid supply disruptions, pushing crude above $100 per barrel for the first time since July.
