$120 oil nightmare looms as Middle East risks deepen
Oil prices surged to near $108 per barrel on Monday after fresh escalations in the Middle East sparked fears of disruptions to global energy supplies. Saudi Arabia and Iran intensified attacks on ships in the Gulf, prompting concerns over worsening wartime impacts. The closure of a key Saudi oil pipeline following a drone strike in Iraq added to supply worries, potentially cutting up to 4% of global oil output.
Saudi state media reported damage to homes and a mosque from a purported Houthi attack in Jazan province, while Iran claimed to have struck a Saudi military base in a neighboring region. An Iranian cargo vessel was also targeted in the Strait of Hormuz, leading Iran to postpone a briefing on managing shipping there. President Masoud Pezeshkian of Iran vowed defiance, while US President Donald Trump suggested Iran desired a deal.
Brent crude futures rose around 3% to trade near $108 per barrel, while WTI Crude futures increased similarly. Analysts warn that unless talks in Oman result in operational solutions or the East-West pipeline is restored quickly, oil prices could extend gains toward $120 per barrel, potentially exceeding early March's near-$120 high.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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