Oil prices jump more than 2% after new strikes on Saudi, Strait of Hormuz

Oil prices surged more than 2% on Monday following additional Houthi strikes on Saudi Arabia and Iranian attacks on vessels in the Gulf, heightening supply worries after a major Saudi oil pipeline was shut down. Brent crude futures surged $2.90, or 2.77%, to $107.51 per barrel as of 2313 GMT, while WTI futures climbed $2.27, or 2.27%, to $102.32 per barrel.

Prices had initially climbed over 3% at the market's opening bell. Saudi state media released footage on Sunday showing damage from a Houthi attack in Jazan province, and the Houthis claimed they had targeted a Saudi military base. A vessel in the Strait of Hormuz suffered fire due to a projectile strike, prompting crew evacuation by the British maritime security agency UKMTO.

Iran reported one death and four injuries aboard an Iranian commercial ship struck off its coast. The pipeline shutdown, originating from Iraq, jeopardized up to 4% of global oil supply. Yemen's Iran-aligned Houthis advanced towards the strategic island of Perim, tightening control over the Bab el-Mandeb Strait, a crucial oil transit lane.

Oil prices jumped 8% over the past week, breaching the $100 mark for the first time since July. Analyst Tony Sycamore cautioned that unless Monday's talks in Oman between Gulf countries and Iran to address the Strait of Hormuz produce tangible results, crude oil could continue its upward trajectory towards the $119.48 peak seen in early March.

However, Omani Foreign Minister Badr Albusaidi announced the Monday meeting in Oman had been postponed after a previous interim agreement in June fell apart after a few weeks.