Oil prices jump over 2% after Saudi attacks, Hormuz ship strike

Global oil prices climbed more than 2% on Monday after fresh Houthi attacks in Saudi Arabia and an incident involving a commercial vessel in the strategically vital Strait of Hormuz intensified fears over energy supplies.

Brent crude rose $2.90, or 2.77%, to $107.51 a barrel, while US West Texas Intermediate gained $2.27, or 2.27%, to $102.32 a barrel, according to Reuters. Prices had surged by more than 3% earlier in the trading session, reflecting growing concern among traders about the security of major energy routes.

The latest jump came after Saudi Arabia temporarily shut down its major East-West oil pipeline, adding another layer of uncertainty to global supply. The pipeline is an important alternative route for transporting Saudi crude and helps reduce the country’s reliance on shipments through the Strait of Hormuz.

The developments have put energy markets on edge as two critical maritime corridors — the Strait of Hormuz and the Red Sea — face heightened security risks.

Saudi state media released footage showing homes and a mosque affected by a Houthi attack in the southern Jazan province. The Houthis also claimed they had targeted a Saudi military base in a neighboring province. There was no immediate independent confirmation of the claim.

Meanwhile, Britain’s maritime security agency reported that a commercial vessel in the Strait of Hormuz had been struck by a missile or another projectile. The incident reportedly caused a fire onboard, forcing the crew to move to a safe location.

The Strait of Hormuz is one of the world’s most important energy chokepoints, making any disruption in the waterway particularly sensitive for global oil markets. Even the threat of prolonged disruption can push prices higher as traders assess potential shortages and rising transportation risks.

The combination of attacks in Saudi Arabia, the vessel incident and the temporary pipeline shutdown has therefore renewed concerns about the reliability of crude supplies from the Gulf.

For consumers and energy-importing economies, sustained disruption could have broader consequences. Higher crude prices can increase fuel, transportation and production costs, potentially adding pressure to inflation in countries already exposed to elevated energy prices.

Markets are now closely watching developments around Saudi Arabia, the Red Sea and the Strait of Hormuz. Any further attacks or prolonged disruption to oil infrastructure and shipping could trigger another sharp move in crude prices.

For now, the latest surge underscores how quickly geopolitical tensions can ripple through global energy markets, with traders once again pricing in the risk that a regional security crisis could threaten one of the world’s most crucial oil supply networks.