Oil prices climbed more than 3 per cent on Monday as fresh attacks on Saudi Arabian energy infrastructure and ships in the Middle East heightened concerns over global crude supplies.
Brent crude futures rose $3.21, or 3.1 per cent, to $107.82 a barrel by 1218 GMT, after touching an intraday high of $108.65. US West Texas Intermediate (WTI) crude gained $2.77, or 2.8 per cent, to $102.82 a barrel.
The latest increase follows a sharp rally in crude prices last week as the conflict in the Middle East intensified. Brent gained around 9 per cent during the week, moving above $100 a barrel for the first time since July and reaching its highest level since May at around $110.
Energy Shock Spreads Beyond Crude
The escalation has also pushed up fuel prices in the US, with diesel rising above $6 a gallon for the first time. US President Donald Trump subsequently urged Ukraine to halt attacks on Russian diesel infrastructure.
The rise in crude and refined-product prices comes as attacks on energy infrastructure and shipping increase concerns over potential disruptions to supplies from the Middle East, a critical region for global oil production and trade.
Higher energy prices are also spilling over into global financial markets. Bond markets have come under pressure as expensive oil and fuel add to inflation concerns and expectations that interest rates could remain elevated.
Government bond yields have repeatedly climbed to fresh multi-year highs amid the renewed inflationary pressure.
The latest oil rally extends a period of heightened volatility in global energy markets, with developments in the Middle East increasingly influencing crude prices and broader expectations around inflation, fuel costs and monetary policy.