Saudi Pipeline Closure Sparks Global Oil Price Surge

Oil prices surged by around 3% to $108 per barrel of Brent crude on Monday morning, following a series of drone attacks on Saudi military targets in Yemen. The attacks forced Saudi Arabia to shut down its east-west pipeline, a vital route for oil exports.

The pipeline's closure has further disrupted the global supply of key commodities, sending wholesale prices skyrocketing. UK natural gas prices rose by around 5% to 209p per therm, reaching their highest level since December 2022.

Saudi Arabia blamed the attacks on drones from Iraq, which Iraq's government pledged to investigate. The Houthis, who are based in Yemen and have pledged support to Iran, made several strategic gains in recent days, seizing key islands in the Bab el-Mandeb Strait.