Oil prices jump more than 2 percent after new strikes on Saudi, Strait of Hormuz
Oil prices had been expected to rise on Monday amid growing concerns about risks to supply from Saudi Arabia, the world's largest oil exporter, whose East-West oil pipeline was shut on Friday by a drone strike that originated in Iraq.
Oil prices surged more than 2 percent on Monday after additional strikes on Saudi Arabia and attacks on ships in the Strait of Hormuz fueled concerns about reduced global oil supply, <source>81a0c0e2-ed2</source>. Brent crude futures climbed US$2.90, or 2.77 percent, to $107.51 per barrel, while West Texas Intermediate (WTI) futures increased $2.27, or 2.27 percent, to $102.32 per barrel as of 23:13 GMT on Monday.
Prices had initially jumped more than 3 percent at the market open on Monday. Saudi Arabia released video footage on Sunday showing damage to homes and a mosque from a Houthi attack in Jazan province, while the Houthis claimed they also targeted a Saudi military base in a neighboring province. A ship in the Strait of Hormuz experienced a fire following a projectile strike, prompting the evacuation of its crew, according to the British maritime security agency UKMTO.
Iranian forces reported one person was killed and four crew members were wounded in an attack on an Iranian commercial vessel near their coast. The closure of the Saudi East-West oil pipeline, damaged by a drone strike from Iraq, threatened up to 4 percent of total global oil supply. Meanwhile, Yemen's Iran-aligned Houthi forces advanced towards the strategic island of Perim, tightening their grip on the Bab el-Mandeb Strait, which carries 4-5 percent of global oil shipments.
Oil prices surged 8 percent over the past week, breaching the $100 mark for the first time since July. Analysts warned that unless recent talks in Oman regarding the Strait of Hormuz yield operational results or the pipeline is swiftly restored, crude oil could continue its upward trend towards the $119.48 high seen in early March.
However, the Omani Foreign Minister stated that a scheduled Monday meeting between Gulf nations and Iran to discuss the Strait of Hormuz had been postponed, as no peace negotiations have taken place since an interim agreement in June fell apart after a few weeks.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
