Middle East Conflicts Send Oil Prices Soaring Amid Supply Fears

Oil prices surged on Monday amid concerns over supply chain disruptions in the Middle East, where ongoing conflicts have raised fears of reduced crude exports.

Saudi Arabia closed a key pipeline, exacerbating worries about high inflation and prompting expectations that the US Federal Reserve will hike interest rates this week.

The Iran-backed Houthis captured Yemen's Red Sea coast on September 11, cementing their hold on the Bab al-Mandab Strait, a vital artery for Saudi Arabian oil exports. The closure of the pipeline has further strained supply chains, fuelling concerns about high inflation and potential price hikes in the US.

As a result, US average diesel prices reached a new record high above $6.0 a gallon on Monday, while crude futures rose by three percent at the start of the week.