Oil prices surged on Monday, pushing Brent crude above $107 a barrel as escalating tensions in the Middle East heightened fears of disruptions to global energy supplies.
Brent crude for November delivery rose 2.8 per cent to $107.54 a barrel, while US benchmark West Texas Intermediate (WTI) for October gained 2.3 per cent to $102.34.
Both contracts extended last week’s gains after climbing back above the $100-a-barrel threshold, as traders assessed the growing risks to oil supplies and shipping routes in the region.
Market attention remained firmly focused on the Middle East, where renewed security concerns threatened key export routes.
The latest developments came as Saudi Arabia temporarily shut its East-West pipeline following drone attacks. In a separate incident, a merchant vessel was struck in the Strait of Hormuz on Sunday, killing one person and injuring three others, according to Iranian authorities.
The Strait of Hormuz had remained open to shipping before the war, but Iran now requires vessels to obtain permission to transit the strategic waterway and is considering a mechanism to impose service fees.
Ships that fail to comply have increasingly faced Iranian strikes, while the United States has periodically carried out attacks along the Iranian coastline in an effort to challenge the Islamic Republic’s control of the strait.
The developments have raised concerns over the potential impact on one of the world’s most important energy chokepoints. The Strait of Hormuz is a vital route for a large share of global seaborne oil trade, meaning prolonged disruption could place further upward pressure on crude prices.
Oman has also postponed talks between Iran and Gulf states on the future of the strategic waterway, adding to uncertainty over efforts to ease tensions and secure shipping through the strait.
With geopolitical risks mounting and key energy routes facing potential disruption, traders are closely watching developments in the region for signs of further supply shocks
AFP
