Oil Prices Jump as Saudi Strikes Raise Global Supply Fears

Oil prices rose by about 1% on Monday following attacks on Saudi Arabian energy infrastructure and ships in the Middle East. The increase came after Yemen's Iran-backed Houthi rebels launched a new attack on Saudi Arabia, targeting aircraft hangars, radar systems, runways, and ammunition depots.

The Houthi's rapid advance in Yemen has captured territory including Perim Island at the mouth of the Red Sea, threatening a key oil transit chokepoint, the Bab el-Mandeb Strait. A separate attack knocked out Saudi Arabia's east-west pipeline, which allows Gulf oil exports to bypass the blockaded Strait of Hormuz and threatens up to 4% of global oil supply.

Market reactions were swift, with Brent crude rising $1.07 to settle at $105.68 per barrel and U.S. West Texas Intermediate (WTI) crude increasing by $1.34 to settle at $101.39. However, prices eased after U.S. President Donald Trump hinted that Iran sought a deal with Washington.