Middle East Tensions Send Oil Prices Soaring
Oil prices surged over 2% on Monday due to escalating tensions in the Middle East. Strikes on Saudi Arabian energy infrastructure and attacks on ships in the region have raised concerns about global oil supplies.
Brent futures rose $2.72, or 2.6%, to $107.33 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by $2.51, or 2.5%, to $102.56. Both benchmarks have been technically overbought for more than a week.
The price jump was partly tempered by US President Donald Trump's statement that Ukraine and Russia had agreed not to hit each other's energy targets. However, the situation remains precarious, with Yemen's Iran-backed Houthis launching another attack on Saudi Arabia.
According to industry sources, Saudi inventories may be able to cushion exports in the near term, but if the disruption extends beyond five to seven days, oil prices could rise sharply.