International oil prices climbed to nearly a two-week high on Monday as escalating tensions in the Middle East raised concerns about potential disruptions to global crude supplies.
Brent crude futures rose by $1.24, or 1.2%, to $106.19 a barrel, reaching their highest level since September 29. At 11:24 GMT, US West Texas Intermediate (WTI) crude futures had gained $1.11, or 1.2%, to $92.96 a barrel.
The increase came as renewed Houthi attacks on Saudi Arabia and attacks on tankers near the Strait of Hormuz heightened fears over the security of critical oil supply routes. Expectations of increased Russian diesel exports and a reported energy ceasefire between Russia and Ukraine have so far failed to ease market concerns.
Houthi Attacks Raise Regional Concerns
Yemen's Iran-backed Houthi rebels claimed responsibility for a Saturday attack on King Khalid International Airport in Riyadh, Saudi Arabia. Reports cited in the incident account said the attack killed 13 people and injured more than 300.
A further attack on the airport on Sunday reportedly killed one person and injured 11 others.
The repeated attacks have raised concerns about the security of critical infrastructure and energy supply networks across the Middle East. Market participants fear that a wider conflict could disrupt oil production, transportation and exports, adding further upward pressure on prices.
Tanker Attacks Raise Fears Over Strait of Hormuz
Security concerns surrounding the Strait of Hormuz have added to the pressure on oil markets. Attacks on tankers operating in and around the strategic waterway have increased uncertainty over the movement of crude oil from the region.
Around one-fifth of global oil consumption typically passes through the Strait of Hormuz, making it one of the world's most important energy shipping routes.
A prolonged disruption to shipping through the strait could restrict supplies to international markets and push prices higher.
Russian Diesel Supplies Fail to Ease Market Concerns
US President Donald Trump has announced an arrangement for increased diesel supplies from Russia, alongside a reported agreement between Russia and Ukraine to halt attacks on energy infrastructure.
The developments had raised expectations of improved fuel availability. However, escalating tensions in the Middle East and risks to tanker movements have overshadowed the potential relief from additional supplies.
Market analysts say announcements of increased supply alone may not be enough to stabilise prices. A sustained improvement in regional security, safe passage for commercial vessels through the Strait of Hormuz and uninterrupted oil exports will be crucial to easing pressure on the market.
Oil prices could remain elevated if tensions persist and concerns about supply disruptions continue.