Oil prices surged again as fresh attacks on vessels and energy infrastructure in the Gulf region raised fears of further supply disruptions through the Strait of Hormuz.
Highlights
- Brent crude futures jumped 3% to $107.74 per barrel.
- WTI crude rose 2.88% to $102.93 per barrel.
- A vessel in the Strait of Hormuz was reportedly hit by a projectile and caught fire.
- Saudi Arabia’s East-West oil pipeline was shut after a drone strike.
Crude Oil Prices Surge 3% as Hormuz Tensions Deepen
Crude oil prices rose sharply on Monday as fresh attacks on vessels and energy infrastructure in the Gulf region intensified concerns over global supply disruptions.
Brent crude futures climbed around 3% to $107.74 a barrel, while West Texas Intermediate, or WTI, futures gained 2.88% to $102.93 a barrel.
The latest rise came after reports of fresh security incidents in and around the Strait of Hormuz, one of the world’s most important oil shipping routes.
The UK Maritime Trade Operations, or UKMTO, said a vessel in the Strait of Hormuz was struck by a projectile. The attack caused a fire and forced the crew to evacuate the vessel.
Separately, Saudi Arabian state media reported a Houthi attack in the country’s southern Jazan province, which caused damage to homes and a mosque. The group had also reportedly targeted a Saudi military base in a neighbouring province.
Energy markets were already under pressure after Saudi Arabia’s East-West oil pipeline was shut following a drone strike on Friday. The pipeline had been used to divert Saudi oil exports away from the Strait of Hormuz.
Its closure is significant because the route provides an alternative export channel for Saudi Arabia, the world’s largest oil exporter. The disruption could potentially affect up to 4% of global oil supply, increasing fears of tighter availability in international markets.
Oil prices had already rallied strongly last week. Crude gained around 8%, with prices moving above $100 a barrel for the first time since July.
Diplomatic efforts to ease tensions have also faced setbacks. A scheduled meeting in Oman between Gulf countries and Iran to discuss the Strait of Hormuz was postponed, according to Omani Foreign Minister Badr Albusaidi.
The latest rise in crude prices could add fresh pressure on oil-importing countries if supply risks persist. Markets are now closely watching developments around the Strait of Hormuz and alternative Gulf export routes for signs of further escalation.
