Middle East tensions push oil above $107 as supply fears mount
Oil prices rose sharply on Monday, pushing Brent crude above $107 a barrel as escalating tensions in the Middle East heightened fears of disruptions to global energy supplies.
Brent crude for November delivery gained 2.8 per cent to $107.54 a barrel, while the US benchmark, West Texas Intermediate (WTI), for October delivery rose 2.3 per cent to $102.34.
Both contracts extended last week’s gains after climbing back above the $100 threshold.
The market remained focused on the Middle East, where fresh security concerns threatened key export routes.
The latest developments came as 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, according to Iranian authorities.
The strait was open to shipping before the war, but Iran now requires vessels to obtain permission to transit and is considering a mechanism to impose service fees.
Ships that fail to comply are regularly targeted by Iranian strikes, while the United States periodically bombs the Iranian coastline in an effort 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, a vital route for a large share of the world’s seaborne oil trade.
