Oil Prices Soar Amid Growing Supply Fears After Houthi Strikes and Pipeline Shutdown

Oil prices surged over 3% on Monday due to growing supply fears after new Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf. The Brent crude futures rose $3.21, or 3.1%, to $107.82 per barrel as of 0340 GMT.

The increase follows a step-up in attacks on Saudi Arabian energy infrastructure, including targeting the crucial east-west pipeline. ING commodity strategists noted that it was unclear how severe any potential damage was or how long the pipeline would be out of action.

Saudi Arabia's East-West oil pipeline was temporarily shut following a drone attack, according to Saudi officials. The shutdown threatens up to 4% of global oil supply and has left Yanbu with enough inventory to cover just five to seven days of exports, according to three industry sources.