Gaza Herald – Oil prices surged by more than two percent on Monday, driven by new Houthi attacks on Saudi Arabia and Iranian strikes on ships in the Gulf that heightened concerns about supplies following the closure of a major Saudi pipeline. By 2313 GMT, Brent crude futures rose $2.90, or 2.77 percent, to $107.51 per barrel. West Texas Intermediate crude increased $2.27, or 2.27 percent, to $102.32 per barrel. Prices initially climbed over three percent at market open.
Saudi state media published footage on Sunday showing damage to homes and a mosque in Jazan province from what it described as a Houthi attack. The Houthis stated they also struck a military base in a neighboring province. The UK Maritime Trade Operations said on Sunday that a ship in the Strait of Hormuz was hit by a shell, causing a fire and forcing crew evacuation. Iran reported one death and four injuries among crew members on a commercial vessel attacked off its coast.
Oil prices were expected to rise amid growing fears over supply risks to Saudi Arabia, the world’s largest oil exporter, after its east-west pipeline closed Friday following a drone attack launched from Iraq. The disruption threatens up to four percent of global oil supplies, as the pipeline helped Saudi Arabia redirect exports away from the Strait of Hormuz.
Meanwhile, the Iran-backed Houthis reached the strategic island of Perim on Friday, aiming to tighten control over the Bab al-Mandab strait, another key oil transit route that carried between four and five percent of global supplies recently. Oil prices rose eight percent during the week due to these disruptions, surpassing the $100 per barrel mark for the first time since July.
This report was produced in the Gaza Herald newsroom.
