Oil prices rose more than 2% Monday after new Houthi strikes on Saudi Arabia and attacks on commercial shipping in the Gulf heightened concerns over global oil supplies.
Brent crude futures climbed $2.90, or 2.77%, to $107.51 a barrel, while U.S. West Texas Intermediate rose $2.27, or 2.27%, to $102.32. Both benchmarks had gained more than 3% at the market open.
The latest gains came after Saudi Arabia’s East-West oil pipeline was shut following a drone strike Friday. The pipeline allows Saudi Arabia to transport oil while bypassing the Strait of Hormuz, and its closure could affect up to 4% of global oil supply.
Reports said homes and a mosque in Jazan province were damaged following a Houthi attack, while the group claimed it had targeted a Saudi military base.
Separately, a vessel in the Strait of Hormuz was hit by a projectile, causing a fire and forcing its crew to evacuate. Iran said one person was killed and four crew members were wounded aboard another commercial vessel.
Risks have also increased around the Bab el-Mandeb Strait after Iran-aligned Houthis reached Yemen’s Perim Island. The route has carried around 4%-5% of global oil supplies in recent months.
Oman said a planned Monday meeting between Gulf states and Iran on shipping through the Strait of Hormuz had been postponed.
Oil prices have already surged 8% this week, crossing $100 a barrel for the first time since July.
