Oil Jumps 2% as Saudi Attacks and Tanker Strikes Revive Hormuz Fears

Oil prices surged to their highest levels in nearly two weeks on Monday, as recent attacks on Saudi Arabia and oil tankers near the Strait of Hormuz reignited concerns over Middle East supply risks. West Texas Intermediate rose 2.10% to $93.78 per barrel, while Brent crude increased 2.00% to $106.80 per barrel. The price jump was driven by a series of attacks on Saudi Arabia, including a Houthi strike on Riyadh's international airport and subsequent assaults on Sunday, as well as two oil tankers being targeted near Oman and the Strait of Hormuz.

These incidents threaten to disrupt Gulf oil exports, which had recovered to 81% of prewar levels in September. Goldman Sachs raised its December Brent forecast to $90 per barrel, estimating that geopolitical risks currently add over $20 per barrel to oil prices. OPEC has also lowered its global oil demand growth expectations for 2026, now anticipating a 400,000 barrel per day increase, down from the 1.4 million bpd forecast earlier in the year.

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