Middle East Tensions Send Brent Crude Prices Soaring Above $107
Crude oil prices surged on Monday as escalating tensions in the Middle East fueled concerns over global energy supplies. Brent crude jumped above $107 a barrel, while US benchmark West Texas Intermediate rose to $103.2.
The spike in oil prices was driven by reports of drone attacks and disruptions to shipping lanes in the Gulf and Red Sea. Saudi Arabia temporarily shut its East-West pipeline after drone strikes, and a merchant vessel was struck in the Strait of Hormuz on Sunday.
Iran has tightened control over the strait, requiring vessels to seek permission to transit and considering a mechanism to impose service fees. The United States bombed the Iranian coastline to challenge Iran's control of the strait.
The surge in oil prices comes as Saudi Arabia reported its lowest monthly output since 2026, with production falling by 23% from July levels.