Oil Prices Surge Over $3 as Saudi Arabia, Strait of Hormuz Face New Attacks

TLDR:

• Brent crude rose 3.46% to $108.23 per barrel after weekend Gulf strikes rattled markets.
• WTI futures climbed 3.15% to $103.20 per barrel amid rising Saudi supply concerns.
• Saudi Arabia’s East-West pipeline shutdown has fueled fears of tighter global oil supply.
• Oman postponed Gulf-Iran talks after the pipeline strike, stalling regional diplomatic efforts.

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Oil prices jumped more than $3 a barrel at Monday’s market open after fresh strikes hit Saudi Arabia and a vessel in the Strait of Hormuz over the weekend.

Brent crude climbed to $108.23 per barrel, up 3.46%. U.S. West Texas Intermediate rose 3.15% to $103.20 per barrel. The surge reflects growing concern over supply risks from the world’s top oil exporter.

Saudi Arabia and Gulf Waters Face Fresh Attacks

Saudi state media released footage on Sunday showing damage to homes and a mosque in the kingdom’s southern Jazan province.

Officials attributed the strike to Houthi forces operating from Yemen. The attack added to a string of incidents targeting Saudi territory in recent days.

The Houthis also claimed a separate strike on a Saudi military base in a nearby province. Saudi Arabia has faced escalating attacks from Iran-allied groups. State media reported more than 70 people injured in an earlier attack on energy facilities and civilian sites.

Away from Saudi soil, a vessel in the Strait of Hormuz was struck by a projectile on Sunday. The British maritime security agency UKMTO confirmed the incident. The strike caused a fire and forced the crew to evacuate the ship.

Iran reported a separate incident involving one of its own commercial vessels. One crew member was killed and four others were wounded off the Iranian coast. Together, the attacks highlight the fragile security situation across Gulf shipping lanes.

Pipeline Shutdown and Stalled Diplomacy Add Pressure

Oil prices had already been expected to rise Monday following last week’s drone strike on Saudi Arabia’s East-West pipeline. The drones reportedly originated from Iraq. Riyadh has not disclosed the extent of the damage or a timeline for repairs.

The pipeline can carry up to 7 million barrels of crude per day. It links Saudi production fields near the Persian Gulf to export terminals on the Red Sea coast. Saudi Aramco’s chief executive has called it central to easing supply disruptions tied to the wider Iran conflict.

A planned meeting in Oman between Gulf states and Iran, meant to address tensions in the Strait of Hormuz, was postponed.

Oman’s foreign minister cited the need for consensus following the pipeline attack. No new date has been set for the talks.

Separately, Houthi forces have reportedly advanced along Yemen’s western coast, taking the port city of Mokha and the strategic Perim Island.

The gains sit near the Bab el-Mandeb Strait, a key route linking the Red Sea to global oil markets. Analysts say continued disruption could push crude prices toward the $119.48 high reached in early March, unless diplomatic talks resume or the pipeline returns to service quickly.

 

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Source: https://blockonomi.com/oil-prices-surge-over-3-as-saudi-arabia-strait-of-hormuz-face-new-attacks/