Global Oil Prices surged more than 3% at the start of the week. Brent crude moved above $107 per barrel amid growing supply concerns.

Traders are closely watching attacks, shipping threats and disruptions to Saudi Arabia’s oil infrastructure. These developments have increased fears about global crude supplies.

Brent crude rose $3.34 to reach $107.84 per barrel. U.S. West Texas Intermediate (WTI) also gained $3.20 to reach $103 per barrel.

The latest increase follows a strong performance in the previous week. Crude prices climbed around 8% last week.

Oil prices also crossed the $100 mark for the first time since July last year. The latest gains show how quickly geopolitical risks are affecting energy markets.

A major concern is the shutdown of Saudi Arabia’s East-West oil pipeline. The pipeline stretches around 1,200 kilometres across the kingdom.

The route moves crude from oil fields in eastern Saudi Arabia toward Yanbu on the Red Sea. It can transport up to seven million barrels of oil daily.

Recent flows through the pipeline were reportedly between four million and five million barrels daily. This represents a significant amount of oil supply.

The longer the pipeline remains closed, the greater the pressure on other transport routes. Storage facilities could also face increased pressure.

Stocks at Yanbu are estimated to support only five to seven days of exports. This estimate assumes that normal pipeline flows do not resume.

The situation has therefore increased pressure on oil traders. Markets are watching closely for signs of further supply disruptions.

Shipping security has also become a major concern. A commercial vessel was reportedly struck by a projectile in the Strait of Hormuz.

Tehran also reported another attack involving a commercial ship off its coast. These incidents have raised concerns about maritime trade routes.

The Bab al-Mandab Strait is facing additional uncertainty. Houthi control around the area could create further risks for international shipping.

The waterway connects the Red Sea with the Gulf of Aden. It is an important route for global energy shipments.

Around 4% to 5% of global oil supplies are estimated to pass through the broader route. Any prolonged disruption could therefore affect international markets.

A planned meeting between Iran and Gulf states has also been postponed. The talks were expected to focus on maritime security.

The delay has created further uncertainty over diplomatic efforts. Traders are now assessing whether negotiations can reduce tensions.

If attacks continue, longer disruptions could become a greater concern. This could keep pressure on Global Oil Prices in the near term.

The impact is also spreading beyond energy markets. Asian stocks opened mostly lower as investors assessed the economic risks.

Higher oil prices can increase transportation and manufacturing costs. They can also raise expenses for consumers.

Rising energy costs could create renewed inflationary pressure across major economies. This may make the task harder for central banks.

Investors are therefore monitoring both geopolitical developments and economic data. Markets remain sensitive to any changes in oil supply risks.

Global Oil Prices are likely to remain influenced by developments across major energy routes. Traders will closely follow pipeline operations and shipping security.

The latest surge highlights the vulnerability of global energy markets. Continued disruptions could keep crude prices elevated for longer.

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