Saudi Strikes Send Oil Prices Soaring by Over $3 per Barrel
Oil prices surged more than US$3 per barrel on Monday after new strikes hit Saudi Arabia and the Strait of Hormuz. Brent crude futures rose by 3.46% to US$108.23 per barrel, while WTI futures jumped 3.15% to US$103.20 per barrel.
The attacks came as a Houthi drone strike damaged homes and a mosque in Saudi Arabia's southern Jazan province, according to state media. The Houthis also claimed responsibility for striking a Saudi military base in a neighboring province.
A commercial vessel in the Strait of Hormuz was struck by a projectile, causing a fire and forcing the crew to evacuate. Iran reported that one person was killed and four crew members were wounded aboard an Iranian vessel struck off its coast.
Market analyst Tony Sycamore warned that unless talks in Oman produce something operational or the East-West pipeline is brought back online quickly, crude oil prices could continue to rise towards US$119.48.