Oil climbs as Mideast conflict, tanker attacks persist

Oil prices climbed on Monday as tensions escalated in the Middle East following a series of strikes and attacks by Iran-backed Houthis. Brent crude futures increased by 76 cents, or 0.73 percent, to US$105.48 a barrel, while US West Texas Intermediate crude rose 59 cents, or 0.64 percent, to US$92.44 a barrel. The Houthis claimed responsibility for an attack on Saudi Arabia's international airport that killed 13 people and injured over 300, while Saudi officials reported injuries in a new airport attack on Sunday.

US President Donald Trump suggested the US might join Saudi strikes on the Houthis, spilling over from the Iran conflict initiated by the US and Israel in February. Trump also announced unexpectedly that Ukraine and Russia had agreed to an energy ceasefire after Russia proposed a diesel supply deal with Russia. Reports of more tanker attacks in the Strait of Hormuz heightened concerns about oil supplies from the region.

Goldman Sachs raised its Brent crude price forecast for December to US$90 a barrel, up from US$85 previously, but warned that continued adaptation of Middle East supply could eventually lower crude oil prices, though potential renewed escalation posed significant net upside risk. Energy companies in the Gulf of Mexico were working to restore production after Hurricane Isaias struck the region.