Middle East Tensions Send Oil Prices Soaring

Oil prices surged by over 3% in early Asian trade on Monday as fears of supply disruption mounted due to continued attacks in the Middle East. The Houthis claimed to have launched a large-scale missile and drone attack against Saudi Arabia, targeting a military base in Sharurah. However, Saudi state media did not confirm this specific attack.

Separately, an alert was released by the UKMTO stating that a vessel within the Strait of Hormuz had been struck by an unknown projectile. The AP later reported that an Iranian cargo vessel had been struck off Qeshm Island, although it is unclear if this is the same attack.

The postponement of a meeting between Gulf states and Iran due to a lack of consensus further added to the bullish sentiment in oil markets. The meeting was scheduled to discuss a potential deal over the temporary management of shipping through the Strait of Hormuz.