Hormuz Tensions Spark Oil Price Surge to $108
A surge in oil prices has been triggered by tensions in the Strait of Hormuz, a sensitive shipping route. On Sunday, Brent futures climbed to $108.23 a barrel and West Texas Intermediate to $103.20 after a regional meeting in Oman was postponed.
The postponement came as Bahrain said it would not attend the gathering, which aimed to discuss a temporary arrangement for managing shipping through the strait. The delay has deprived markets of a diplomatic signal at a time when physical supply concerns are rising.
A separate concern is the shutdown of Saudi Arabia's East-West pipeline after a drone strike from Iraq on Thursday. The 7 million barrels per day pipeline can bypass the Strait of Hormuz, but its closure adds to worries about supply disruptions.