Oil Prices Spike Amid Pipeline Shutdown and Inflation Fears

Oil prices surged on Monday (14) after Saudi Arabia closed its key East-West pipeline due to drone attacks by Yemen's Houthis, fueling concerns about high inflation that could push the US Federal Reserve to raise interest rates this week.

The price hike coincided with a new record high for US average diesel prices, which reached above $6.0 a gallon.

As a result of the pipeline shutdown and rising crude futures, North Sea Brent crude jumped 3.0 percent to $107.71 per barrel, while West Texas Intermediate rose 2.9 percent to $102.90 per barrel.

Russ Mould, investment director at AJ Bell, noted that 'oil and AI fears are causing a double headache for investors,' citing rising bond yields and a loss of momentum on equity markets due to inflation fears.