Oil prices climbed sharply on Monday, with Brent crude rising above $107 a barrel as growing tensions in the Middle East raised fresh concerns about 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 increased 2.3 per cent to $102.34.
Both benchmarks extended gains recorded last week after prices returned above the $100-a-barrel mark.
Market attention remained focused on the Middle East as heightened security concerns put key oil export routes under pressure.
Saudi Arabia temporarily shut its East-West pipeline following drone attacks, while a merchant vessel was struck in the Strait of Hormuz on Sunday, killing one person and injuring three others, Iranian authorities said.
The developments have intensified concerns over the security of a crucial global energy route.
The strait was free to transit before the war, but Iran now requires vessels to obtain permission and is considering a mechanism to impose service fees.
Ships that do not comply are regularly targeted by Iranian strikes, while the United States periodically bombs the Iranian coastline to challenge the Islamic republic’s control of the strait.
Oman has also postponed talks between Iran and Gulf states on the future of the strategic waterway, which remains a vital route for a significant share of the world’s seaborne oil trade.
With tensions continuing to rise, traders are closely monitoring developments around the Strait of Hormuz and other critical energy infrastructure for signs of further disruptions that could push oil prices even higher.
