New Delhi: Global crude oil prices surged on Monday, with Brent climbing above 107 dollars a barrel as escalating Middle East tensions heightened fears of supply disruptions through key shipping routes.
Brent crude for November delivery jumped 3.20 per cent to 107.82 dollars a barrel, while US benchmark West Texas Intermediate for October rose 3.20 per cent to 103.20 dollars.
Both benchmarks extended last week's rally, which had pushed crude prices back above the 100-dollar mark.
Strait Of Hormuz Risks Rise
Oil markets remained focused on security developments around the Strait of Hormuz and Red Sea, critical routes for global crude shipments.
Supply fears intensified after reports that Saudi Arabia temporarily shut its East-West pipeline following drone attacks. A merchant vessel was also reportedly struck in the Strait of Hormuz on Sunday.
Iranian authorities said the incident left one person dead and three injured.
Iran has tightened its control over the strait, requiring vessels to seek permission before transit and considering a mechanism to impose service fees. Non-compliant vessels have reportedly faced strikes.
The United States has also bombed parts of the Iranian coastline as it challenges Tehran's control over the strategic waterway.
Meanwhile, Oman postponed talks between Iran and Gulf countries over the future of the Strait of Hormuz.
Brent Gains Over 30 Percent
Brent crude has risen more than 30 per cent from its early-August lows after efforts to secure a permanent US-Iran agreement to halt attacks failed to deliver a breakthrough.
Fighting resumed later in August, increasing concerns over the security of oil supplies from the Gulf region.
Saudi Output Slumps
Supply worries have been compounded by a sharp fall in Saudi Arabia's crude production.
Saudi Arabia reported to OPEC that it produced 6.2 million barrels per day in August, its lowest monthly output of 2026 and 23 per cent below July levels.
The production decline comes as Iran-backed Houthi forces in Yemen threaten oil shipments from Saudi Arabia's west coast.
