Oil Prices Spike on New Strikes and Pipeline Closure

Oil prices surged more than 3% on Monday as Houthi strikes in Saudi Arabia and Iranian attacks on ships in the Gulf added to supply concerns following the closure of a key Saudi oil pipeline.

Brent crude futures rose $3.21, or 3.1%, to $107.82 per barrel, while WTI futures gained $3.17, or 3.2%, to $103.22 per barrel, according to Reuters.

The East-West oil pipeline, which helps Saudi Arabia avoid the Strait of Hormuz and re-route its exports, was temporarily shut following a drone attack, said Saudi officials.

The shutdown threatens up to 4% of global oil supply, with Yanbu's inventory covering just five to seven days of exports, according to industry sources familiar with Saudi Arabia's exports.