Gulf Tensions and Saudi Pipeline Closure Fuel Oil Price Surge

Oil prices continued to rise on Monday due to escalating tensions in the Gulf region and concerns over disruptions to crude oil supplies from Saudi Arabia.

Brent crude surged by 1.02 percent, reaching $105.68 a barrel at settlement, while West Texas Intermediate (WTI) crude increased by 1.34 percent to $101.39, according to data cited by Reuters.

The price hike comes after a vessel was hit in the Strait of Hormuz and the closure of Saudi Arabia's East-West Pipeline following a drone attack.

A disruption to the pipeline could threaten up to 4 percent of global oil supplies, adding to concerns over supplies. The rise in crude prices pushed U.S. diesel prices above $6 a gallon for the first time.