Oil prices rose sharply on Monday, with Brent crude climbing above $107 a barrel as escalating tensions in the Middle East heightened concerns over disruptions to global energy supplies.
Gatekeepers News reports that Brent crude for November delivery gained 2.8 percent to $107.54 a barrel, while US benchmark West Texas Intermediate (WTI) for October rose 2.3 percent to $102.34.
Both benchmarks extended gains recorded last week after prices climbed back above the $100-a-barrel mark.
Market attention remained focused on the Middle East, where renewed security concerns threatened key oil export routes.
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 of Hormuz, a critical route for global oil shipments, was previously open to vessels seeking to transit the waterway. However, Iran now requires ships to obtain permission and is considering a mechanism to impose service fees.
Vessels that fail to comply have reportedly faced Iranian attacks, while the United States has periodically carried out strikes along the Iranian coastline in an effort to challenge Tehran’s control of the strategic waterway.
Oman has also postponed talks between Iran and Gulf states on the future of the Strait of Hormuz, adding to uncertainty surrounding one of the world’s most important energy shipping routes.
The developments have intensified fears that further disruption around the waterway could affect the flow of crude to international markets and put additional upward pressure on oil prices.
