Saudi Pipeline Attack and Hormuz Risks Send Oil Prices Soaring

Oil prices rose significantly on Monday as concerns over global crude supplies intensified following an attack on Saudi Arabia's East-West Oil Pipeline. The pipeline, which has a maximum capacity of around 7 million barrels per day, was targeted by several drones, causing injuries and damage. The Saudi Foreign Ministry condemned the attack, stating that repair work is underway to secure the damaged areas and inspect the pipeline.

The temporary closure of the pipeline has raised concerns over possible supply disruptions, supporting oil prices. International benchmark Brent crude futures for November delivery traded at $107.16 a barrel, up 2.5% from the previous close of $104.61. US benchmark West Texas Intermediate (WTI) crude futures for October delivery rose 2.4% to $102.54 a barrel.

Security risks in the Strait of Hormuz are also contributing to elevated concerns over global oil supplies. A vessel transiting the Strait was struck by an unidentified type of munition, killing one person and injuring three others. The US Energy Information Administration (EIA) has raised its oil price forecasts for this year and next, citing increased supply disruptions in the Middle East.