Oil Prices Surge as China Returns to Buying and Middle East Tensions Rise

Oil prices have surged to nearly $98 per barrel as Chinese crude buying returns and Middle East risks intensify. The price of Brent briefly topped $98 before easing slightly.

The Strait of Hormuz remains a key concern, with Iran warning that ships face the risk of attack near the Oman coastline. A deal between Iran and Oman to manage shipping through the strait is reportedly imminent, but it's unclear how the US would respond after striking Iranian vessels over the weekend.

Saudi Aramco's oil facilities in Jazan came under fresh attack on Monday, forcing a major refinery in the area to shut operations. The attack adds to the growing list of strikes targeting Saudi infrastructure.

China's return to buying crude has driven up prices for barrels from West Africa to Canada. Earlier in the war, China's oil-buying hiatus was one of the key factors quelling prices.