Oil Prices Soar as Saudi Pipeline Shut Down and Iranian Attacks Escalate
Oil prices surged on Monday after new strikes on Saudi Arabia's energy and civilian infrastructure and Iranian attacks on ships in the Gulf raised supply concerns. Brent crude futures climbed $2.93, or 2.8%, to $107.54 per barrel at 0700 GMT.
The 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 the port of Yanbu on the Red Sea with just five to seven days' worth of inventory.
Iranian attacks on ships in the Gulf have also caused concerns about supply disruptions. A vessel in the Strait of Hormuz was struck by a projectile, causing a fire and forcing the crew to evacuate.
The increase in oil prices follows last week's 8% surge due to disruptions, which pushed prices above $100 for the first time since July.