Oil Prices Spike as Middle East Tensions Escalate Attacks

Oil prices surged over 2% on Monday as concerns about energy supplies mounted following attacks on Saudi Arabian infrastructure and ships in the Middle East.

The Brent futures rose $2.72, or 2.6%, to $107.33 per barrel at 11:39 a.m. EDT (1539 GMT), while U.S. West Texas Intermediate (WTI) crude rose $2.51, or 2.5%, to $102.56.

The attacks on Saudi Arabia's east-west pipeline and ships in the Gulf have raised fears about global oil supplies. The Houthis launched a new attack on Saudi Arabia after fighting that has extended the Middle East war to another theater.

Janiv Shah, an oil markets analyst at Rystad, noted that 'the relatively contained price reaction suggests the market still expects Saudi inventories to cushion exports in the near term,' but warned that if the disruption extends beyond a five-to-seven-day inventory cushion, prices could change quickly.