Crude oil prices climbed above $107 a barrel on Monday as attacks in the Gulf and the shutdown of a major Saudi oil pipeline intensified concerns over global supplies. Brent crude rose 2.77% to $107.51 a barrel, while US West Texas Intermediate gained 2.27% to $102.32, with analysts warning prices could rise further if supply disruptions persist.
Why Are Global Oil Supplies Under Pressure?
Saudi Arabia’s East-West oil pipeline was shut on Friday following a drone strike originating in Iraq, threatening a route capable of carrying a significant share of the country’s exports while bypassing the Strait of Hormuz. The disruption could affect up to 4% of global oil supply. Meanwhile, attacks on vessels in the Strait of Hormuz and growing Houthi activity around the Bab el-Mandeb have increased risks to two major global energy routes.
Could Oil Prices Rise Further?
Oil prices have already gained around 8% over the past week and moved above $100 for the first time since July. Analysts said crude could continue rising if the Saudi pipeline is not restored quickly or diplomatic efforts fail to ease tensions. A planned meeting between Gulf states and Iran in Oman on the Strait of Hormuz was postponed, while the wider conflict continues to disrupt regional energy and shipping infrastructure.