Houthi Attacks Send Oil Prices Soaring Amid Strait of Hormuz Tensions

Oil prices surged on Monday after Houthi attacks on Saudi Arabia and the postponement of talks between Gulf countries and Iran over the Strait of Hormuz. The increased tensions have driven worries about prolonged Middle East shipping disruptions.

The price of Brent oil futures briefly rose by 4.3% to $109.14 a barrel, while West Texas Intermediate crude futures jumped 4.0% to $104.04 a barrel. The Houthi militants in Yemen have taken control of strategic islands in the southern Red Sea, further complicating global shipping routes.

The Bab el-Mandeb Strait, which links the Red Sea with the Gulf of Aden, has emerged as a new flashpoint in the Middle East conflict. About 12% of worldwide trade traverses this critical corridor, according to Al Jazeera.

Analysts warn that the delay of the Hormuz talks will push any prospect of de-escalation further out of reach. The Houthis have claimed to have carried out a 'large-scale military operation' on Saudi Arabia's King Khalid Air Base.