Oil Prices Soar as Houthi Strikes and Pipeline Disruptions Fuel Supply Concerns

Oil prices surged on Monday after new strikes by the Houthi rebels on Saudi Arabia and attacks on ships in the Gulf, raising concerns about global supply. The Brent crude futures rose $2.90, or 2.77%, to $107.51 a barrel as of 2313 GMT, while West Texas Intermediate (WTI) futures rose $2.27, or 2.27%, to $102.32 a barrel.

The East-West oil pipeline in Saudi Arabia was shut down on Friday after a drone strike from Iraq, threatening up to 4% of global oil supply. The loss of the pipeline made it difficult for Saudi Arabia to reroute exports around the Strait of Hormuz, another key oil transit lane that has been shipping 4-5% of global supply in recent months.

Tony Sycamore, an IG market analyst, warned that unless the week's talks in Oman produce something operational or the East-West pipeline is brought back online quickly, crude oil prices may continue to rise towards $119.48 high of early March.