Oil Prices Surge Over $3 Following Strikes in Saudi Arabia and Strait of Hormuz

Oil prices experienced a significant rise of over $3 a barrel at the market open on Monday, driven by recent strikes on Saudi Arabia and incidents involving ships in the Strait of Hormuz.

Brent crude futures climbed by $2.90, or 2.77%, reaching $107.51 per barrel, while WTI futures increased by $2.27, or 2.27%, to $102.32 per barrel. Initial market reactions saw prices jump more than 3% at the start of trading.

Saudi state media reported damage from a Houthi attack in the southern Jazan province, and the Houthis claimed to have targeted a military base nearby. Additionally, a projectile struck a vessel in the Strait of Hormuz, leading to a fire and crew evacuation. These developments follow the closure of a key Saudi oil pipeline, which has raised concerns about global oil supply, potentially affecting up to 4% of it. The situation has led to an overall 8% increase in oil prices over the week.