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

Oil prices surged nearly three percent on Monday after new attacks on Saudi Arabian energy infrastructure and Iranian assaults on ships in the Gulf heightened supply worries. Brent crude futures shot up $2.93, or 2.8 percent, to $107.54 per barrel at 0700 GMT, while WTI futures jumped $2.88, or 2.9 percent, to $102.93 per barrel.

ING commodity strategists noted the recent escalation of assaults on Saudi Arabian energy facilities, particularly the targeted East-West pipeline. However, the extent of potential damage and the duration of any pipeline disruption remained uncertain.

The East-West pipeline, crucial for Saudi Arabia to bypass the Strait of Hormuz and reroute exports, was briefly shut down following a drone attack, as Saudi officials confirmed. This shutdown threatens up to 4 percent of global oil supply.

With the pipeline offline, the Yanbu port on the Red Sea held just five to seven days' worth of exports, according to three industry sources familiar with Saudi Arabia's oil deliveries. Saudi Arabian state television broadcast footage of destruction caused by a Houthi attack in the southern Jazan province. The Houthis also claimed responsibility for striking a Saudi military base in a neighboring region.

Meanwhile, a vessel in the Strait of Hormuz was hit by a projectile, igniting a fire and prompting the crew to abandon ship, according to the UK Maritime Trade Organisation. Iran reported one fatality and four injuries among the crew of an Iranian commercial ship struck off its coast.

Omani Foreign Minister Badr Albusaidi disclosed on X that a planned Monday meeting in Oman among Gulf nations and Iran to discuss the Strait of Hormuz had been postponed. No peace talks have taken place since an interim agreement in June fell apart following six months of conflict initiated by the United States and Israel.