Key facts
- Oil prices surged over $3 on Monday following new strikes on Saudi Arabia and ships in the Gulf of Hormuz.
- Brent crude futures rose to $108.23 a barrel, up 3.46%.
- WTI futures rose to $103.20 a barrel, up 3.15%.
- Saudi Arabia temporarily closed its East-West pipeline after a drone attack.
- A ship in the Strait of Hormuz was hit by a projectile, causing a fire.
- US President Donald Trump suggested Iran was likely to blame for the attacks.
Oil prices surged more than $3 at market open on Monday, driven by new reports of attacks on Saudi Arabia's vital oil pipeline and a ship in the Strait of Hormuz. Brent crude futures climbed $3.62, or 3.46%, to $108.23 a barrel, while WTI futures rose $3.15, or 3.15%, to $103.20 per barrel.
Saudi Arabia announced on Saturday it had temporarily closed its 1,200 km East-West pipeline, which moves 4 million to 5 million barrels per day (4-5% of global supply), as a precaution following a drone attack that Riyadh and Baghdad said originated in Iraq, where Iranian-backed militias operate. The pipeline has been the main route for Middle East oil exports for the past six months.
Adding to supply concerns, maritime trackers received reports of an attack on a ship in the Strait of Hormuz on Sunday. The British navy-affiliated agency UKMTO reported a projectile hit a vessel, causing a fire, and the crew was evacuated. US President Donald Trump, visiting Ireland, suggested Iran was likely to blame for the incidents.
In related developments, Saudi Arabia's Civil Defence stated that Houthi projectiles injured two people and damaged buildings in Jazan. Iranian state media reported an Iranian commercial vessel was struck off its southern coast early Sunday, killing one person and wounding three. The Houthis also claimed Saudi Arabia carried out airstrikes in Yemen.
Crown Prince Mohammed bin Salman of Saudi Arabia phoned President Trump on Thursday to request US military assistance against the Houthis. Trump confirmed the conversation, stating Washington would not intervene directly for now but would provide intelligence. Four Yemeni government sources told Reuters that the Houthis had seized the strategic island of Perim in the Bab el-Mandeb Strait on Friday.