Global Oil Prices Rise Due to Attacks and Supply Concerns
Attacks in Saudi Arabia and the Gulf, along with the closure of a pipeline, pushed oil prices upward; Brent crude reached $107.51 per barrel.
Supply concerns mounted in global oil markets following attacks on Saudi Arabia, vessel incidents in the Gulf, and the closure of a critical pipeline.
Rise in Oil Prices
Crude oil prices experienced an increase of over 2 percent on Monday amid growing supply concerns. Brent crude gained 2.77 percent in value, rising to $107.51 per barrel.
Saudi Arabia and Regional Attacks
As a result of attacks targeting the Jizan region in southern Saudi Arabia, damage occurred to homes and a mosque. The Houthis also announced that they targeted a military base in a neighboring region.
Vessel Incidents in the Gulf
The British maritime security agency UKMTO reported that a fire broke out after a projectile hit a vessel in the Strait of Hormuz and the crew was evacuated. Meanwhile, Iran announced that one person lost their life on a commercial vessel attacked off its coast.
Risks in the Pipeline and Straits
Saudi Arabia's East-West oil pipeline was shut down following a drone attack originating from Iraq. While this situation threatens 4 percent of the global oil supply, the Houthis are increasing their control over the Bab el-Mandeb Strait.
Market Analysts' Assessments
IG market analyst Tony Sycamore stated that if the pipeline is not put back into operation quickly, prices carry the risk of rising toward the peak seen in early March. On the other hand, it was announced that the planned meeting in Oman has been postponed.