Oil prices climbed sharply on Monday, with Brent crude rising above $107 a barrel as escalating tensions in the Middle East heightened concerns over potential 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 delivery gained 2.3 per cent to $102.34.
Both contracts extended gains from last week, when prices moved back above the $100-a-barrel mark.
Market attention remained focused on the Middle East as renewed security concerns threatened major oil export routes and raised fears of further supply disruptions.
The latest developments came after Saudi Arabia temporarily shut its East-West pipeline following drone attacks. Separately, a merchant vessel was struck in the Strait of Hormuz on Sunday, leaving one person dead and three others injured, according to Iranian authorities.
The Strait of Hormuz, a critical route for global oil shipments, had remained open to commercial traffic before the conflict. Iran now requires vessels to obtain permission to transit the waterway and is considering a mechanism to impose service fees.
Vessels that fail to comply have increasingly faced attacks attributed to Iran, while the United States has periodically carried out strikes along the Iranian coastline in an effort to challenge Tehran’s control of the strategic waterway.
Meanwhile, Oman has postponed talks between Iran and Gulf states over the future of the Strait of Hormuz, adding to uncertainty surrounding the vital passage through which a significant share of the world’s seaborne oil trade flows.
