Oil Prices Up over 3% Following New Strikes on Saudi, Strait of Hormuz

Oil prices rose ‌more than 3% on Monday, after new Houthi strikes on Saudi Arabia and Iranian attacks on ships in the persian Gulf compounded supply concerns following the closure of a key Saudi oil pipeline. Brent crude futures rose US$3.21, or 3.1%, to US$107.82 per barrel as ​of 0340 GMT. WTI futures gained US$3.17, or 3.2%, to US$103.22 per barrel.

"This follows a step-up in attacks ​on Saudi Arabian energy infrastructure, including targeting the crucial east-west pipeline," said ING commodity ⁠strategists, although noting that it was unclear how severe any potential damage was or how long the ​pipeline would be out of action.

Saudi Arabia's East-West oil pipeline was temporarily shut following a drone attack, according to Saudi ​officials. The shutdown of the pipeline, which helps Saudi Arabia avoid the Strait of Hormuz and re-route its exports, threatens up to 4% of global oil supply.

With the pipeline out of service, Yanbu has enough inventory to cover just five to ​seven days of exports, according to three industry sources familiar with Saudi Arabia's exports. Saudi Arabian state media ​on Sunday released video footage of damage to homes and a mosque from what it said was a Houthi attack on ‌the country's ⁠southern Jazan province. The Houthis said they had also struck a Saudi military base in a neighbouring province.

Meanwhile, a vessel in the Strait of Hormuz was struck by a projectile, causing a fire and forcing the crew to be evacuated, the British maritime security agency UKMTO said on Sunday. Iran said one person was ​killed and four crew ​wounded aboard an Iranian ⁠commercial vessel struck off its coast. Yemen's Iran-aligned Houthis reached the strategic island of Perim on Friday, moving to tighten their control over the Bab el-Mandeb strait, another key ​oil transit lane that has been carrying 4%-5% of global supply in ​recent months. Oil surged 8% ⁠higher last week due to the disruptions, rising above US$100 for the first time since July.

Omani Foreign Minister Badr Albusaidi said on X on Sunday, that a scheduled Monday meeting in Oman between GCC countries and Iran to ⁠discuss ​the Strait of Hormuz had been postponed.