Oil prices surged past $108 per barrel on Monday as tensions escalated in the Strait of Hormuz. A merchant vessel was struck in the strategic waterway, killing one crew member, while Saudi Arabia shut down its main pipeline, bypassing the region. The move raised fears of further disruptions to global oil supplies.
The incident followed reports that Yemen's rebels claimed to have damaged a key military site in Saudi Arabia with drones and missiles. Saudi Arabia has not responded to the claims, adding to regional uncertainty. Meanwhile, talks between Iran and Gulf nations on oil supply security were delayed, highlighting growing concerns over energy stability.
Iran accused Saudi Arabia of attempting to delay Oman-based discussions on Hormuz, while denying involvement in recent attacks. The country also criticized the U.S. For alleged war crimes. These tensions have intensified market volatility, with Brent crude nearing $110.
The situation underscores the fragility of Middle East oil infrastructure and the potential for further price shocks if conflicts escalate. Analysts warn of prolonged uncertainty as supply routes remain under threat.
