Brent crude at $107 per barrel following new strikes on Saudi Arabia, Strait of Hormuz

Oil prices climbed about three percent on Monday after new strikes on Saudi Arabian energy and civilian infrastructure, along with Iranian attacks on ships in the Gulf, raised concerns about supply. Brent crude futures jumped $2.93, or 2.8 percent, to $107.54 per barrel, while West Texas Intermediate (WTI) futures rose $2.88, or 2.9 percent, to $102.93 per barrel.

ING commodity strategists noted the increase follows a rise in attacks on Saudi Arabian energy infrastructure, particularly the crucial East-West pipeline. However, the extent of the damage and the duration of the pipeline's outage remain unclear. The East-West pipeline, which helps Saudi Arabia avoid the Strait of Hormuz and redirect exports, has threatened up to 4 percent of global oil supply due to its temporary shutdown following a drone attack.

Saudi Arabian state media released video footage of homes and a mosque damaged in what it claimed was a Houthi attack in the southern Jazan province, while the Houthis also reported striking a Saudi military base in a neighboring province. Additionally, a vessel in the Strait of Hormuz was hit by a projectile, leading to a fire and forcing the crew to evacuate.

Iran confirmed one person was killed and four crew members were wounded aboard an Iranian commercial vessel struck off its coast. Meanwhile, Yemen's Houthis reached the strategic island of Perim, further tightening their control over the Bab el-Mandeb strait, another significant oil transit lane responsible for carrying 4 to 5 percent of global supply.

Oil prices surged 8 percent higher last week due to the disruptions, reaching above $100 for the first time since July. The Gulf countries and Iran were scheduled to meet in Oman to discuss the Strait of Hormuz on Monday, but the meeting has been postponed as peace talks since the US and Israel's joint initiative six months ago have collapsed.