Middle East Tensions Send Oil Prices Soaring to 16-Week High

Oil prices surged on Monday to their highest level in 16 weeks due to ongoing tensions and attacks in the Middle East. The Brent futures rose by $4.68, or 4.5%, to $109.29 per barrel, while US West Texas Intermediate (WTI) crude increased by $4.21, or 4.2%, to $104.26.

The hikes were triggered by new strikes on Saudi Arabian energy infrastructure and attacks on ships in the region, which have compounded energy supply concerns. The Strait of Hormuz, a critical shipping lane, saw commodity vessel transits fall to a single digit per day over the weekend, below its 10-day average of 14.

The disruption has raised worries about global oil supplies, with industry sources estimating that Saudi inventories can only cushion exports for five to seven days. If the disruption extends beyond this period, it could lead to a significant price increase.