Oil Prices Soar as Middle East Attacks Raise Supply Concerns

Oil prices surged more than 2% on Monday after a series of attacks in the Middle East raised concerns over supply disruptions.

The price of Brent crude rose to USD 107.51 a barrel, while West Texas Intermediate (WTI) crude climbed to USD 102.32 a barrel.

The hikes came following reports of Houthi attacks on Saudi Arabia and an Iranian attack on a vessel in the Gulf region, which added to supply concerns.

Saudi state media released footage showing damage caused by the Houthis' drone attack in Jazan province, while the UK's maritime security agency reported that a vessel was hit by a projectile in the Strait of Hormuz.

IG market analyst Tony Sycamore predicted that oil prices could continue rising towards USD 119.48 a barrel if talks between Gulf states and Iran fail to produce a concrete agreement or the East-West pipeline does not resume operations soon.