Key facts
- Brent crude futures rose $2.07, or 2%, to $106.79 a barrel.
- US West Texas Intermediate crude was up $1.69, or 1.8%, at $93.54 a barrel.
- The Houthis claimed responsibility for a Saturday strike on Riyadh's international airport.
- Goldman Sachs raised its December Brent price forecast to $90 a barrel from $85.
- Trump announced Russia would supply over 300,000 metric tons of diesel to US and global markets.
- Zelenskiy accused Russia of violating an energy ceasefire.
Oil prices climbed on Monday as escalating attacks on Saudi Arabia threatened crude oil supplies, overshadowing potential new diesel exports from Russia and a reported energy ceasefire between Russia and Ukraine. Brent crude futures rose $2.07, or 2%, to $106.79 a barrel by 1321 GMT, their highest since September 29. US West Texas Intermediate crude was trading at $93.54 a barrel, up $1.69, or 1.8%.
The Iran-aligned Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300. Further attacks occurred on Sunday. The attacks, along with reports of more attacks on tankers in the Strait of Hormuz this month, have raised concerns about Middle East crude exports.
"The sense of some kind of normality of exports from the Strait of Hormuz was shattered last week. Fresh attacks by the Houthis on Saudi Arabia added to this and helped to lift prices," said SEB commodities analyst Bjarne Schieldrop.
Goldman Sachs raised its Brent price forecast for December to $90 a barrel from $85, estimating a risk premium of just over $20 a barrel. The bank forecast WTI prices to average $81 in December 2026 and $73 in 2027.
In separate news, US President Donald Trump announced that Russia would supply over 300,000 metric tons of diesel to US and global markets, with more to come. However, PVM analyst Tamas Varga noted that Russia's refining capacity has been reduced, and the immediate impact of the deal is questionable. Trump also announced an energy ceasefire between Ukraine and Russia, though Ukrainian leader Volodymyr Zelenskiy accused Russia of violating it on Monday.