Middle East Tensions Send Oil Prices Soaring Amid Houthi Attacks
Crude oil prices surged on Monday after fresh attacks by Yemen's Houthi group on Saudi Arabia and tensions in the Strait of Hormuz raised fears of disruptions to regional supplies. The delay of planned talks between Iran and other Persian Gulf powers over the strategic waterway added to market uncertainty.
Brent crude futures climbed as much as 2.40% to $107.41 a barrel, while West Texas Intermediate (WTI) crude futures advanced 2.54% to $102.34 a barrel. The gains came amid heightened tensions in the Middle East after Houthi attacks over the weekend targeted major Saudi facilities and shipping in the Bab el-Mandeb.
The Iran-aligned Houthis have strengthened their position to launch attacks in the Bab el-Mandeb Strait and against key Saudi energy infrastructure, raising fresh concerns over oil supplies from the region. Analysts said that Riyadh has lost the option to use Western exports if the Strait of Hormuz deteriorates again.