Oil prices jump more than US$3 after new strikes on Saudi, Strait of Hormuz

BEIJING: Oil prices rose more than US$3 a barrel at the market open on Monday, after new strikes on Saudi Arabia and on ships in the Gulf on Sunday (Sep 13).

Brent crude futures rose US$3.62, or 3.46 per cent, to US$108.23 per barrel as of 10.14pm GMT Sunday. WTI futures rose US$3.15, or 3.15 per cent, to US$103.20 per barrel.

Saudi Arabian state media on Sunday released video footage of damage to homes and a mosque from what it said was a Houthi attack on the country's southern Jazan province. The Houthis said they had also struck a Saudi military base in a neighbouring province.

A vessel in the Strait of Hormuz was struck by a projectile, causing a fire and forcing the crew to be evacuated, the British maritime security agency ‌UKMTO said on Sunday.

Iran said one person was killed and four crew wounded aboard an Iranian commercial vessel struck off its coast.

Oil prices had been expected to rise on Monday amid growing concerns about risks to supply from Saudi Arabia, the world's largest oil exporter, whose East-West oil pipeline was shut last week by a drone strike that originated in Iraq.

"Looking ahead, unless this week's talks in Oman produce something operational — or the East-West pipeline is brought back online quickly — the risk is that crude oil continues to extend its gains toward the US$119.48 high of early March," IG market analyst Tony Sycamore said in a note on Sunday.

Omani Foreign Minister Badr Albusaidi said on X later on Sunday, however, that a scheduled Monday meeting in Oman between Gulf countries and Iran to discuss the Strait of Hormuz had been postponed.