Global oil benchmarks gained more than 4% on Monday, following pipeline outage in Saudi Arabia and regional chokepoint tightening raising supply concerns.
Front-month West Texas Intermediate futures gained 4.5% to $104.53 per barrel, while Brent futures climbed 4.5% to $109.27/bbl.
Regional supply anxiety deepened following drone attacks that forced the temporary shutdown of Saudi Arabia's East-West Pipeline.
"We don't yet know the extent of the damage or how long any disruption will last... This market is nervous, and with good reason," Kpler analysts said.
Disabling the corridor which bypasses the Strait of Hormuz to re-route exports toward the Bab el-Mandeb strait threatens roughly 4% of global oil supplies, compounding momentum from last week's triple-digit rally driven by military friction, tight US inventories, and recovering Chinese physical demand.
ING analysts noted that the extended pipeline offline status, carrying no set restart date, keeps market stress elevated.
Supply fears multiplied as planned Omani-hosted talks on a temporary Strait of Hormuz shipping corridor were postponed indefinitely following Saudi reservations and a Bahraini opt-out, Saxo Bank analysts noted.
Simultaneously, geopolitical chokepoint pressures widened as Houthi forces captured the Yemeni port city of Mocha, threatening southern approaches to the Bab el-Mandeb alternative export route.
While Argus analysts said that immediate physical volume impacts from Mocha remain limited given already depressed Saudi flows through the strait, broader macro risk pricing persists across energy complexes.