Oil Prices Rise Above $108 After Houthi Attacks on Saudi Pipeline

Oil markets surged on Monday as Brent crude rose above $108 a barrel, following a series of drone attacks that forced Saudi Arabia to shut its critical east‑west crude pipeline. The benchmark climbed 3.7 %, reaching $108.5 a barrel, and sent global oil prices higher amid growing uncertainty over supply routes in the Gulf region.

The attacks, attributed to Iran‑linked rebels, also saw the group seize a strategic island in the Bab al‑Mandab strait, a key chokepoint for maritime traffic between the Red Sea and the Arabian Sea. The combination of the pipeline shutdown and the island capture has tightened supply expectations, prompting traders to bid up prices as they anticipate disruptions to the flow of crude from the Persian Gulf to global markets.

Analysts warn that the continued activity in the region could sustain elevated oil prices and increase volatility in the coming weeks, as shipping lanes and pipeline operations remain vulnerable to further attacks. The situation underscores the fragility of energy infrastructure in geopolitically contested waters and its ripple effects on worldwide energy markets.