Oil Prices Soar on Middle East Supply Fears, Tech Stocks Slump
Global oil prices surged on Monday due to concerns over Middle East supply after Saudi Arabia closed its key East-West pipeline following drone attacks by Yemen's Houthi rebels.
The Houthis have been cementing their hold on the Bab Al-Mandab strait, a vital shipping corridor linking Europe and Asia that has been used as an alternative to Hormuz. The Strait of Hormuz is another critical waterway where a merchant vessel was struck.
As a result, oil prices jumped more than three percent at one point, with Brent North Sea Crude reaching $107.66 per barrel and West Texas Intermediate hitting $102.73 per barrel.
The rise in energy costs has been a key driver of global inflation since the US and Israel started their war on Iran at the end of February, putting pressure on central banks to hike interest rates.