GCC-Iran meeting on Strait of Hormuz navigation postponed

Oil prices surged over 3% on Monday, as Houthi strikes on Saudi Arabia and Iranian attacks on vessels in the Strait of Hormuz amplified concerns about dwindling energy supplies, Bloomberg reported. Brent crude futures climbed $3.21, or 3.1%, to $107.82 per barrel, while West Texas Intermediate (WTI) futures jumped $3.17, or 3.2%, to $103.22 per barrel.

"This comes as attacks escalate on Saudi energy infrastructure, with the critical east-west pipeline being targeted," stated ING commodity strategists, though acknowledging the extent of potential damage and repair duration remained uncertain. Saudi Arabia's East-West oil pipeline was briefly halted after a drone assault, according to Saudi authorities, a move threatening up to 4% of global oil output.

With the pipeline sidelined, Yanbu now possesses enough inventory to fuel exports for merely five to seven days, according to industry insiders well-versed in Saudi Arabia's export operations. Saudi state media unveiled footage on Sunday depicting home and mosque destruction allegedly caused by a Houthi assault in Jazan province's southern region.

The Houthis also claimed responsibility for striking a Saudi military base in an adjacent province. Simultaneously, a vessel in the Strait of Hormuz suffered a projectile strike, igniting a fire and obliging the crew's evacuation. Iran reported one fatality and four wounded crew members aboard an Iranian commercial ship targeted off its coastline.

Yemen's Houthi rebels reached the strategic island of Perim on Friday, tightening their grip over the Bab el-Mandeb strait, another vital oil transit lane responsible for 4%-5% of global supply in recent months. Oil prices jumped 8% higher last week due to the disruptions, surging above $100 for the first time since July. Omani Foreign Minister Badr Albusaidi disclosed on X on Sunday that a planned Monday meeting between Gulf nations and Iran to address the Strait of Hormuz had been postponed due to ongoing hostilities.