Oil Prices Soar After Houthi Strikes and Strait of Hormuz Attacks

Oil prices surged more than $3 on Monday after new strikes by Houthi rebels on Saudi Arabia and attacks on ships in the Strait of Hormuz. The Houthis claimed to have struck a Saudi military base in a neighboring province, while a vessel in the strait was hit by a projectile, causing a fire and forcing the crew to evacuate.

The disruptions compound supply concerns following the closure of a key Saudi oil pipeline on Friday. The loss of the pipeline threatens up to 4% of global oil supply, further exacerbating existing tensions over the Strait of Hormuz, another critical oil transit lane that has been shipping 4-5% of global supply in recent months.

Saudi Arabian state media released video footage showing damage to homes and a mosque from what it said was a Houthi attack on the country's southern Jazan province. Iranian-aligned Houthis also reached the strategic island of Perim, moving to tighten their control over the Bab el-Mandeb Strait.