Oil prices surged on Monday, with Brent crude rising to $107 a barrel as escalating tensions in the Middle East fueled concerns over potential disruptions to energy supplies.
Brent crude for November delivery rose 2.8% to $107.54 a barrel, while US West Texas Intermediate (WTI) crude for October delivery gained 2.3% to $102.34 a barrel.
Oil continued to build on the gains recorded last week, when prices climbed back above the $100-a-barrel mark.
Market attention remained firmly focused on the Middle East, where renewed security concerns are threatening key export routes.
The latest gains came after Saudi Arabia temporarily shut down its East-West Pipeline following drone attacks. Meanwhile, an Iranian commercial vessel was attacked in the Strait of Hormuz on Sunday, killing one person, according to Iranian television, which cited the governor of Qeshm Island.
The Strait of Hormuz had remained open to shipping before the war, but Iran now requires vessels to obtain permission to pass through and is also considering a mechanism to impose service fees.
Non-compliant vessels have come under Iranian attacks, while the United States has regularly bombarded Iran’s coastline in a challenge to Tehran’s efforts to assert control over the strait.
Oman announced late Sunday that it had postponed a meeting scheduled for Monday between Iran and Gulf countries to discuss the future of the Strait of Hormuz.
Source: AFP
