Brent crude climbed 2.24% to around $107 a barrel on Monday after Saudi Arabia said it was facing another wave of incoming missile and drone attacks.
The renewed escalation reversed the earlier decline in crude prices, with traders again focusing on the possibility that fighting could spread to Saudi oil facilities, export infrastructure or strategic shipping routes.
The latest barrage follows a deadly Houthi strike on King Khalid International Airport in Riyadh over the weekend, which forced the airport to close while authorities assessed the damage.
So far there has been no confirmed major disruption to Saudi crude production or exports.
That distinction remains crucial for oil markets. Prices had recently become less sensitive to geopolitical headlines unless they threatened physical supply, but Brent’s move above $107 shows investors are now assigning a higher probability to disruption.
Saudi Arabia is one of the world’s largest crude exporters, meaning even a temporary interruption at production facilities, export terminals or major transport routes could have an outsized impact on global supply.
For investors, the key question is whether the escalation remains confined to security and aviation targets or begins affecting energy infrastructure and shipping.
Any confirmed loss of Saudi production or export capacity could push oil materially higher, while an absence of physical disruption could allow some of the latest geopolitical premium to unwind.
Sustained oil prices above $100 would also renew pressure on inflation, transport costs and interest-rate expectations, while benefiting energy produ
