Oil prices jump over 2% as fresh Saudi, Strait of Hormuz strikes fuel supply fears
Oil prices surged over 2% following new Houthi attacks on Saudi Arabia and Iranian strikes on vessels in the Gulf, exacerbating supply concerns. These incidents, coupled with the shutdown of a key Saudi oil pipeline after a drone attack, have pushed Brent crude above $107 a barrel and WTI above $102, raising fears about global oil supply.
Why it matters
Escalating tensions in the Middle East, particularly around critical oil transit routes like the Strait of Hormuz and Bab el-Mandeb Strait, directly impact global energy markets, potentially leading to higher fuel prices and economic instability worldwide.
Oil prices rose more than 2% on Monday as fresh Houthi attacks on Saudi Arabia and Iranian strikes on vessels in the Gulf added to supply concerns following the shutdown of a key Saudi oil pipeline.Brent crude futures rose $2.90, or 2.77%, to $107.51 a barrel by 2313 GMT. US West Texas Intermediate (WTI) crude gained $2.27, or 2.27%, to $102.32 a barrel.Prices had initially climbed more than 3% at the market open. Brent rose $3.62, or 3.46%, to $108.23 a barrel by 2214 GMT on Sunday, while WTI increased $3.15, or 3.15%, to $103.20 a barrel.Saudi state media on Sunday released footage showing damage to homes and a mosque in the southern Jazan province following what it described as a Houthi attack.
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