Brent crude rises above $107 after fresh Saudi strikes

Oil prices climbed nearly 3% on Monday as fresh attacks on Saudi Arabia’s energy and civilian infrastructure, along with Iranian attacks on vessels in the Gulf, intensified concerns over global oil supplies.

Brent crude futures rose $2.93, or 2.8%, to $107.54 a barrel by 0700 GMT, equivalent to 12pm Pakistan time. US West Texas Intermediate (WTI) crude also gained $2.88, or 2.9%, to reach $102.93 per barrel.

The latest increase came after Saudi Arabia’s East-West oil pipeline was temporarily shut following a drone attack. The pipeline is strategically important because it allows Saudi Arabia to transport oil to the Red Sea port of Yanbu while bypassing the Strait of Hormuz.

The disruption has raised concerns about the availability of Saudi oil exports. The pipeline handles volumes equivalent to as much as 4% of global oil supply. Industry sources said Yanbu currently has enough stocks to maintain exports for only around five to seven days.

Analysts said the scale and duration of the damage to the pipeline remain uncertain. However, repeated attacks on Saudi energy infrastructure have increased fears of further supply disruptions and tighter global oil markets.

Saudi state media also released footage showing damage to homes and a mosque in the southern Jazan province following what authorities described as a Houthi attack. The Houthis separately claimed they had targeted a Saudi military base in a nearby province.

Tensions have also escalated around the Strait of Hormuz. A vessel was reportedly hit by a projectile in the strategic waterway, triggering a fire and forcing its crew to evacuate, according to the UK Maritime Trade Operations agency. Iran said a commercial vessel was struck off its coast, leaving one person dead and four crew members injured.

Meanwhile, Yemen’s Houthis have reportedly reached Perim Island, raising concerns over the Bab el-Mandeb Strait, another major route for global oil shipments.

Oil prices had already surged around 8% last week, crossing $100 a barrel for the first time since July amid mounting supply disruptions.

Diplomatic efforts have also faced setbacks. Oman’s Foreign Minister Badr Albusaidi said a planned meeting between Gulf states and Iran on the Strait of Hormuz had been postponed.