Middle East Tensions Send Oil Prices Soaring on Monday
Oil prices surged on Monday as concerns about energy supplies mounted following attacks on Saudi Arabian infrastructure and vessels in the Middle East. Brent futures rose $2.72 or 2.6% to $107.33 per barrel, while US West Texas Intermediate (WTI) crude gained $2.51 or 2.5% to trade at $102.56 a barrel.
The attacks have heightened fears of a major supply disruption in the region. The UK Maritime Trade Operations released an alert saying that a vessel within the Strait of Hormuz had been struck by an unknown projectile, while Iran claimed that it had attacked 77 ships for violating its protocols.
Commodity vessel transits through the Strait of Hormuz fell to a single digit per day at the weekend, down from a 10-day average of 14. This has raised concerns about the region's ability to maintain oil supplies amid ongoing tensions between Saudi Arabia and Iran-backed proxies.