Key facts
- Brent crude oil prices rose to $108 a barrel amid escalating regional tensions.
- Houthi rebels claimed responsibility for missile and drone attacks on Saudi military targets.
- Saudi Arabia's east-west oil export pipeline was knocked offline by an aerial attack blamed on Iran-backed militias in Iraq.
- Gulf Arab states postponed planned talks with Iran concerning the Strait of Hormuz.
- The UN's International Maritime Organization reported the oil tanker El Gaia was damaged on Saturday, with two seafarers missing.
Brent crude oil prices surged past $108 a barrel on Monday as escalating regional tensions threatened global oil supplies. Yemen's Iran-aligned Houthis launched a new wave of attacks on Saudi Arabia, including missile and drone strikes on a military airbase, which they stated were in retaliation for Saudi airstrikes.
These attacks, coupled with the closure of Saudi Arabia's east-west oil export pipeline following an aerial assault blamed on Iran-backed militias in Iraq, have disrupted supply. Traders warned that a prolonged shutdown of the 1,200-kilometer pipeline could cut off as much as 4% of global oil supply.
Meanwhile, Gulf Arab states postponed planned talks with Iran concerning the Strait of Hormuz, citing a lack of Arab consensus and Saudi anger over Tehran's alleged support for the Houthis. The postponement occurred on the same day the Houthis claimed responsibility for the attacks on Saudi targets.
Adding to the volatility, conflicting reports emerged regarding an oil tanker, the El Gaia. Iran's Revolutionary Guard Corps claimed it was hit by sea mines, while the U.S. military's Central Command stated it was struck by an Iranian missile last month. The UN's International Maritime Organization reported the tanker was damaged on Saturday with two seafarers missing.