Saudi Pipeline Shutdown Sends Oil Prices Soaring

Oil prices surged on Monday due to growing concerns about supply disruptions in key oil transit lanes. The East-West pipeline, which is crucial for Saudi Arabia's oil exports, was shut down by a drone strike originating from Iraq.

The loss of the pipeline threatens up to 4% of global oil supply. Meanwhile, Yemen's Iran-aligned Houthis reached the strategic island of Perim on Friday, tightening their control over the Bab el-Mandeb Strait, another key oil transit lane that carries 4-5% of global supply.

Brent crude futures rose $2.90, or 2.77%, to $107.51 per barrel, while WTI futures increased by $2.27, or 2.27%, to $102.32 per barrel.