Global crude oil prices surged significantly at the opening of Monday's trading session, driven by fears of supply disruptions following a deadly attack on a major Saudi Arabian aviation hub and allegations of a breach of an energy ceasefire in Eastern Europe. International benchmark Brent crude futures jumped approximately 2% to $106.81 per barrel, while the U.S. benchmark West Texas Intermediate (WTI) rose 2.1% to trade at $93.73 per barrel.
The primary trigger for the tension in commodity markets occurred on Saturday when Iran-backed Houthi militants from Yemen launched a large-scale attack on King Khalid International Airport in Riyadh. The drone and missile strikes killed 12 people and injured over 300 others. Early Monday morning, the Saudi-led military coalition confirmed it was repelling yet another wave of aerial attacks targeting the Kingdom's territory.
In Europe, energy security risks intensified after Ukrainian President Volodymyr Zelenskyy claimed that Russia had deliberately violated an energy ceasefire agreement announced by U.S. President Donald Trump. According to Kyiv, Moscow's forces shelled natural gas production facilities in Ukraine, dashing hopes that Eastern Europe's energy infrastructure corridors would remain safe from military strikes.
Amid the conflict in Ukraine, Trump had previously stated that Moscow agreed to supply over 4 million tonnes of diesel fuel to the global market—following a telephone conversation with President Vladimir Putin—to alleviate supply shortages. At the same time, regional diplomatic channels were activated as Iranian Foreign Minister Abbas Araghchi contacted his Saudi counterpart, Faisal bin Farhan bin Abdullah, to discuss escalating cross-border tensions.
Oil market sentiment came under pressure due to domestic supply constraints in the United States caused by the threat of natural disasters. Approximately 1.2 million barrels per day of offshore crude oil production capacity in the Gulf of Mexico had to be shut down due to the path of Hurricane Isaias, sharply reducing physical market liquidity at a time when global fuel demand continues to face prolonged geopolitical uncertainty.
