Middle East Tensions Send Oil Prices Soaring Amid Pipeline Shutdown Threat
Oil prices surged on Monday as tensions in the Middle East continued to rise, with no signs of de-escalation. The regional meeting between Gulf countries scheduled for Tuesday was postponed, fueling concerns over the stability of global oil supplies.
The Brent crude price gained more than 3.5%, reaching $108.35 per barrel, while West Texas Intermediate climbed 3.20% to $103.25 per barrel.
Omani Foreign Minister Badr Albusaidi stated that the meeting was postponed 'in the interests of consensus' and emphasized the commitment to fostering dialogue for stability and cooperation in the region.
The Strait of Hormuz remains a major concern, as Iran's blockade prevents most ships from transiting through it. Saudi Arabia's shutdown of the East-West pipeline due to multiple attacks could lead to a loss of 4% of global oil supply if not resolved within days.