Brent crude futures rose $2.90, or 2.77%, to $107.51 per barrel as of 2313 GMT, while WTI futures climbed $2.27, or 2.27%, to $102.32 per barrel. Prices had initially surged more than 3% at market open.
Saudi Arabian state media released footage on Sunday showing damage to homes and a mosque in the southern Jazan province after a Houthi attack. The Houthis also claimed to have struck a Saudi military base in a neighbouring province.
In the Strait of Hormuz, a vessel was hit by a projectile, setting it on fire and forcing crew evacuation, according to the British maritime security agency UKMTO. An Iranian commercial ship struck off its coast suffered one fatality and four wounded crew members.
The attacks come amid concerns over Saudi Arabia’s East‑West oil pipeline, which was shut on Friday by a drone strike originating in Iraq. The pipeline loss threatens up to 4% of global oil supply and has pushed prices above $100 for the first time since July.
Yemen’s Iran‑aligned Houthis also reached the island of Perim on Friday, tightening control over the Bab el‑Mandeb Strait, another key oil transit lane that handles 4‑5% of global supply.
IG market analyst Tony Sycamore warned that unless talks in Oman produce operational outcomes or the pipeline is restored quickly, crude could keep climbing toward the early March high of $119.48.
Omani Foreign Minister Badr Albusaidi later said a scheduled Monday meeting between Gulf countries and Iran on the Strait of Hormuz had been postponed.
