Oil prices climbed above $108 a barrel Monday after drone attacks forced Saudi Arabia to close its East-West crude pipeline, adding to concerns about energy supplies and shipping routes across the Middle East.
Brent crude, the international benchmark, rose as much as 3.25% to $108.03 a barrel.
The increase followed several attacks against Saudi Arabia by Yemen’s Iran-aligned Houthi forces. The group also captured Perim, a strategically located island in the Bab al-Mandab strait, on Sunday, expanding its control around a waterway used by international shipping.
The attacks closed Saudi Arabia’s East-West pipeline, which allows crude to move from oil fields in the eastern part of the country to the Red Sea. Traders warned that Saudi export supplies could run low within days if the pipeline does not reopen.
Market concerns increased after Gulf nations postponed a meeting with Tehran on establishing a temporary shipping lane through the Strait of Hormuz. About one-fifth of the world’s oil and gas supply normally passes through the strait.
British natural gas prices also rose Monday, gaining 5% to reach their highest level since December 2022.
Energy markets have been volatile throughout 2026 as the U.S.-Israeli war with Iran disrupted Middle Eastern oil and gas supplies. Brent crude reached $126 a barrel in April before declining during the summer amid hopes that a ceasefire would hold.
Prices began rising again after an agreement between the United States and Iran collapsed and hostilities intensified. Brent moved above $100 last week for the first time since July.
Saudi production had already declined before the pipeline attacks. The kingdom recently told OPEC that its August crude output was at its lowest level since 1990, according to Bloomberg.
The renewed increase in energy prices could add to inflation pressures as central banks in the United States, Japan and the United Kingdom prepare to make interest-rate decisions this week. Continued attacks on oil facilities or shipping could push prices closer to the highs reached earlier this year.
Source: The Guardian