Oil prices surge past $106 one barrel

Global oil prices surged past $106 a barrel on Monday (october 12) amid escalating tensions in the Middle East and growing concerns over potential disruptions to crude supplies.

Brent crude futures rose 2 per cent to $106.79 a barrel, while US West Texas Intermediate (WTI) crude gained 1.8 per cent to $93.54, according to Reuters.

The increase came amid concerns over the security of energy shipments following attacks in Saudi Arabia and incidents involving tankers near Oman and the Strait of Hormuz, a key route for global oil trade. 

Yemen's Iran-aligned Houthi group claimed responsibility for a strike on Riyadh's international airport on Saturday. Further attacks were reported on Sunday, adding to market concerns over regional security and the potential impact on oil exports.

Meanwhile, US President Donald Trump announced a proposed energy ceasefire between Russia and Ukraine and said Russia would supply additional diesel to international markets. However, uncertainty over the impact of the proposed arrangements has kept traders focused on the risks to global energy supplies. 

Analysts have warned that continued disruptions to shipping and energy infrastructure could sustain upward pressure on crude prices, while any improvement in regional security could ease supply concerns.