Oil Prices Rise Above $107 as Mideast Supply Fears Grow

Oil prices rose sharply on Monday, with Brent crude climbing above $107 a barrel as escalating tensions in the Middle East intensified fears of disruptions to global energy supplies.

Brent crude for November delivery rose 2.8% to $107.54 a barrel, while US benchmark West Texas Intermediate for October gained 2.3% to $102.34.

Both contracts extended their gains from last week, when prices moved back above the $100 threshold.

Market attention remained focused on the Middle East, where fresh security concerns threatened key energy export routes.

Saudi Arabia temporarily shut its East-West pipeline following drone attacks, while a merchant vessel was struck in the Strait of Hormuz on Sunday, killing one person and injuring three others, according to Iranian authorities.

The Strait of Hormuz, a vital route for a significant share of the world's seaborne oil trade, had remained open to shipping before the conflict. Iran now requires vessels to obtain permission to transit and is considering a mechanism to impose service fees.

Vessels that fail to comply have reportedly faced Iranian attacks, while the United States has periodically carried out strikes along Iran's coastline, challenging Tehran's control over the strategic waterway.

Oman has also postponed talks between Iran and Gulf states on the future of the Strait of Hormuz.