Oil prices jumped Monday morning after Saudi Arabia was forced to shut a pipeline as drone attacks by Iran-backed Houthi rebels intensified. Fighting in Yemen also widened.
The Saudi pipeline can carry 7 million barrels per day, adding to pressure on oil supply, CNBC noted.
Furthermore, a meeting between Iran and several Gulf states, that had been scheduled to discuss the re-opening of the Strait of Hormuz has been cancelled, several media outlets reported.
West Texas Intermediate October crude oil futures, the US benchmark, jumped 3.7% to $103.74 per barrel. November Brent oil futures, the international benchmark, climbed 4% to $108.63 a barrel.
Comex gold December futures fell 2.2% to $4,313.30 per ounce, as expectations rise that the US Federal Reserve will raise interest rates at its meeting this week.
In agricultural commodities, December wheat futures rose 0.5% to $7.28 per bushel, while canola futures for November advanced 0.9% to CA$824.30 per tonne.