Oil Prices Soar as Houthi Strikes Hit Saudi Arabia and Strait of Hormuz

Oil prices surged more than 2% on Monday after new attacks on Saudi Arabia and the Strait of Hormuz increased concerns about global oil supply. Brent crude futures rose $2.90, or 2.77%, to $107.51 per barrel as of 2313 GMT, while WTI futures climbed $2.27, or 2.27%, to $102.32 per barrel.

The attacks came after Saudi Arabian state media released video footage showing damage to homes and a mosque in the country's southern Jazan province. The Houthis claimed responsibility for striking a Saudi military base in a neighboring province, while Iran said one person was killed and four crew members wounded aboard an Iranian commercial vessel struck off its coast.

The closure of a key Saudi oil pipeline last Friday, which originated from a drone strike in Iraq, threatened up to 4% of global oil supply. Yemen's Houthi rebels had also reached the strategic island of Perim on Friday, tightening their control over the Bab el-Mandeb Strait and shipping 4-5% of global supply.

Market analyst Tony Sycamore predicted that unless this week's talks in Oman produce something operational or the East-West pipeline is quickly brought back online, crude oil may continue to extend its gains towards $119.48, a high set in early March.