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Oil prices rose about three per cent on Monday, after new strikes on Saudi Arabian energy and civilian infrastructure and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline.
Brent crude futures climbed $2.93, or 2.8pc, to $107.54 per barrel at 0700 GMT (12pm PKT). WTI futures gained $2.88, or 2.9pc, to $102.93 per barrel.
“This follows a step-up in attacks on Saudi Arabian energy infrastructure, including targeting the crucial East-West pipeline,” said ING commodity strategists, though they noted it was unclear how severe any potential damage was or how long the pipeline would be out of action.
Saudi Arabia’s East-West oil pipeline was temporarily shut following a drone attack, according to Saudi officials. The shutdown of the pipeline, which helps Saudi Arabia avoid the Strait of Hormuz and re-route its exports, threatens up to 4pc of global oil supply.
