Oil surges past $108 as Hormuz attack and Saudi pipeline shutdown rattle markets
Oil prices have surged past $108 per barrel following drone attacks on Saudi infrastructure and ongoing instability in the Strait of Hormuz. The supply disruption has led to record-high fuel prices in the United States, prompting political finger-pointing.
Why it matters
Rising energy costs have significant global economic implications, affecting inflation and consumer purchasing power.
The oil market spent Monday morning pricing in a weekend of bad news from the Gulf.Brent for October and November deliveries gained over 3% and crossed $108 a barrel, while the US benchmark WTI for October also rose more than 3% to around $103, both extending last week's advance after each reclaimed the $100 threshold.Prices moved following Saudi Arabia's announcement that its East-West pipeline is temporarily closed after drone attacks.The line carries crude across the kingdom to Red Sea ports, allowing oil to reach export terminals without passing through the Strait of Hormuz, so its loss removes the main alternative at the moment the strait itself is most dangerous.That danger was also demonstrated on Sunday, when a merchant vessel was hit in the strait, killing one person and injuring three others, according to Iranian authorities.Passage through the waterway now works very differently from before the war.Vessels must obtain Iranian permission…
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in