Middle East Tensions Send Oil Prices Soaring Above $100

Oil prices surged above $100 last week for the first time since July due to escalating tensions in the Middle East. A new wave of attacks on Saudi Arabia and ships in the Gulf has raised concerns about the global energy supply, with traders expecting prices to rise again when markets reopen on Monday.

The latest incidents include a British vessel being struck by a projectile in the Strait of Hormuz, causing a fire and forcing the crew to evacuate. In Saudi Arabia, state media released video of damage to homes and a mosque from a purported cross-border attack by the Houthis in Jazan province.

Saudi Arabia has enough oil stored at its Red Sea port of Yanbu to maintain exports for just five to seven days if the pipeline struck on Friday remains shut. This could jeopardize up to 4% of global oil supply, on top of millions of barrels already lost due to disruptions in the Strait of Hormuz.

Iran will meet with Gulf Arab states in Oman on Monday to discuss future shipping routes through the strait, but few details have been released about the meeting. US Foreign Minister Abbas Araqchi said Iran would not reopen the strait until the United States satisfies Tehran's demands.