Global oil prices surge past $107 per barrel

International benchmark Brent crude futures rose 2.77 per cent to trade at $107.51 per barrel, while US West Texas Intermediate (WTI) crude gained 2.27 per cent to reach $102.32 per barrel. The sudden escalation follows a broader weekly rally that pushed crude prices past the $100 threshold for the first time since July.

Market concerns intensified after a drone strike forced the shutdown of Saudi Arabia’s strategic East-West pipeline. The key pipeline allows the world’s top crude exporter to bypass the vulnerable Strait of Hormuz by redirecting shipments directly to Red Sea terminals.

According to industry data, the disruption threatens up to 4 per cent of total global oil supply.

Simultaneously, maritime security along crucial regional chokepoints faced severe disruption. The UK Maritime Trade Operations (UKMTO) agency reported that a vessel in the Strait of Hormuz was struck by a projectile, starting a fire and forcing the crew to evacuate.

Iran separately reported one fatality and four injuries aboard a commercial vessel hit off its coast.

Adding to maritime uncertainty, Houthi forces reached the strategic island of Perim near the Bab el-Mandeb Strait - a key shipping passage that handles 4 to 5 per cent of global oil flows.

Meanwhile, a planned security meeting between Gulf nations and Iran regarding the Strait of Hormuz was postponed, according to Omani officials. Energy analysts warn that sustained oil prices above $100 per barrel will place severe upward pressure on global fuel, freight, and export logistics costs.