Oil prices jumped more than 3 percent on Monday as fresh attacks on Saudi energy facilities and vessels near the Strait of Hormuz raised fears of further disruption to global supplies.
Brent crude futures climbed $3.21, or 3.1 percent, to $107.82 a barrel by 0340 GMT. US West Texas Intermediate (WTI) crude gained $3.17, or 3.2 percent, to $103.22 a barrel.
The latest gains came after Saudi Arabia temporarily shut its East-West oil pipeline following a drone attack. The pipeline is a key route for the kingdom to move crude to its western coast without using the Strait of Hormuz.
The shutdown has added to concerns over an already fragile supply situation. The pipeline can carry enough oil to account for around 4 percent of global supply, making any prolonged disruption a potential threat to international markets.
Industry sources told Reuters that oil inventories at the Red Sea port of Yanbu could cover only five to seven days of exports if the pipeline remains out of service.
“Attacks on Saudi Arabian energy infrastructure have stepped up,” ING commodity strategists said, while noting that the extent of the pipeline damage and the likely duration of the shutdown remained unclear.
The Houthis have also increased attacks on Saudi Arabia. Saudi state media released footage showing damage to homes and a mosque in Jazan province following what it described as a Houthi attack. The group said it had also targeted a Saudi military base in a nearby province.
Tensions have also spread to shipping routes. A vessel in the Strait of Hormuz was hit by a projectile on Sunday, sparking a fire and forcing its crew to evacuate, according to the UK Maritime Trade Operations agency.
Iran separately reported that an Iranian commercial vessel was struck off its coast, killing one person and injuring four crew members.
The situation is also worsening around the Bab el-Mandeb Strait. The Houthis reached the strategic island of Perim on Friday, raising concerns about their ability to tighten control over another major route for oil shipments. The waterway has carried around 4 percent to 5 percent of global oil supply in recent months.
Oil prices rose about 8 percent last week, pushing Brent above $100 for the first time since July.
Hopes of easing tensions also weakened after Oman said a planned Monday meeting between Gulf countries and Iran on the Strait of Hormuz had been postponed. No fresh peace talks have taken place since an interim agreement in June collapsed.
With key oil routes facing growing security risks, traders are now watching closely for any further attacks or prolonged shutdowns that could tighten global supplies and keep crude prices above $100.
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