Key facts
- Oil prices settled about 1% higher Monday after new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East raised concerns about energy supplies.
- Brent crude futures rose 2.6% to $107.33 a barrel, and WTI crude futures climbed 2.5% to $102.56.
- Saudi Arabia temporarily closed its East-West pipeline after a drone attack blamed on Iran-backed fighters in Iraq.
- The strike threatened up to 4% of global oil supply.
- A vessel in the Strait of Hormuz was hit by a projectile, causing a fire, according to preliminary ship tracking data.
Oil prices settled about 1% higher Monday as concerns over global energy supplies intensified following new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East. Brent crude futures rose 2.6% to $107.33 per barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 2.5% to $102.56.
Saudi Arabia temporarily closed its East-West pipeline, which has a capacity of 7 million barrels per day, after a drone attack that Riyadh blamed on Iran-backed fighters in Iraq. The strike threatened up to 4% of global oil supply, forcing oil shipments to be re-routed to the Red Sea instead of the Strait of Hormuz. Preliminary ship tracking data showed commodity vessel transits through the Strait of Hormuz fell to single digits per day over the weekend, well below the 10-day average of 14.
In parallel, Yemen's Iran-aligned Houthis fired dozens of missiles and drones at a Saudi military airbase and tightened their control over the Bab el-Mandeb strait. Iran also issued a list of 77 ships it said had violated its operating protocols in Hormuz. The Red Sea port of Yanbu must now draw on storage, estimated to cover five to seven days of exports, according to industry sources.
U.S. President Donald Trump commented that Iran was eager to make a deal, which helped pare some of the oil market's initial gains.