Brent climbs above $108 amid Saudi pipeline shutdown and regional tensions

Brent crude rose above $108 a barrel on Monday as the shutdown of Saudi Arabia’s East-West oil pipeline raised fears of further disruptions to global energy supplies as tensions flared across the Middle East.

Brent futures soared more than 3% to $108.03 a barrel, according to market data reported Monday. The surge came after Saudi Arabia decided to shut down the 1,200-km pipeline after drone strikes caused damage and injury in areas around Riyadh and Medina.

The pipeline transports crude from Saudi oilfields in the east to the Red Sea port of Yanbu, offering a vital route for the kingdom to avoid the Strait of Hormuz. Its closure has raised concerns over alternative export routes with shipping through the strait still heavily disrupted.

Reuters reported the shutdown could threaten up to 4% of global oil supply if it continues adding to pressure on prices.

No group has claimed responsibility but the attacks have been blamed on forces connected to the regional conflict. Iraq said the strikes were carried out from its territory and has launched an investigation.

The latest spike in oil prices fuels inflation worries in economies reliant on imported crude, while traders are looking to see if Saudi Arabia can get the pipeline back up and running and continue exports via alternate routes.