Middle East Tensions Drive Oil Prices to New Heights

Oil prices continued to surge on Monday due to ongoing tensions in the Middle East. Brent crude futures rose by $3.44, or 3.3%, to reach $108.05 a barrel by 12:20 GMT, while West Texas Intermediate crude futures gained $2.85, or 2.85%, to $102.90 a barrel.

The recent attacks across the Middle East have intensified concerns over global oil supplies. Saudi Arabia's East-West oil pipeline was temporarily shut down following a drone attack, which threatens to remove as much as 4% of global oil supplies.

The Red Sea port of Yanbu has enough inventories to cover only five to seven days of exports, according to industry sources. The situation is further complicated by the recent seizure of strategic islands around the Bab el-Mandeb Strait by Iran-aligned Houthi forces in Yemen.