OIL prices climbed more than 2% on Monday, with Brent crude rising above US$107 a barrel as fresh attacks by Yemen’s Iran-aligned Houthis and Iran on shipping compounded concerns over global supplies after a key Saudi oil pipeline was shut.
Brent crude futures rose US$2.90, or 2.77%, to US$107.51 a barrel by 2313 GMT, while US West Texas Intermediate futures gained US$2.27, or 2.27%, to US$102.32. Both benchmarks had risen more than 3% at the market open.
Saudi state media on Sunday released video footage showing damage to homes and a mosque in the southern Jazan province from what it said was a Houthi attack. The Houthis also said they had struck a Saudi military base in a neighbouring province.
A vessel in the Strait of Hormuz was struck by a projectile, causing a fire and forcing its crew to evacuate, according to the British maritime security agency UKMTO.
Iran said one person was killed and four crew members wounded aboard an Iranian commercial vessel struck off its coast.
The latest attacks added to concerns over Saudi oil exports after the kingdom’s East-West pipeline was shut on Friday following a drone strike originating in Iraq. The pipeline had allowed Saudi Arabia to reroute exports and avoid the Strait of Hormuz.
The pipeline shutdown threatens up to 4% of global oil supply, adding to the risks surrounding the Strait of Hormuz, a vital transit route for crude shipments.
Meanwhile, the Houthis reached the strategic island of Perim on Friday, tightening their position near the Bab el-Mandeb Strait, another key oil transit route that has carried 4% to 5% of global oil supplies in recent months.
"Looking ahead, unless this week's talks in Oman produce something operational — or the East-West pipeline is brought back online quickly — the risk is that crude oil continues to extend its gains toward the $119.48 high of early March," Reuters cited IG market analyst Tony Sycamore saying in a note on Sunday.
Omani Foreign Minister Badr Albusaidi said on X on Sunday that a scheduled Monday meeting in Oman between Gulf countries and Iran to discuss the Strait of Hormuz had been postponed.
Concurrently, the US dollar held steady on Monday while the yen held near a seven-month high as investors positioned for potentially pivotal monetary policy decisions by the Federal Reserve and Bank of Japan later this week.
The US Fed is due to announce its interest rate decision on Wednesday, followed by the BOJ on Friday, with both central banks facing shifting inflation pressures as the six-month-old US-Israeli war on Iran pushes oil prices well above $100 a barrel.
The European Central Bank raised rates last week and warned of further increases, while the Bank of England is expected to hold rates on Thursday, although the vote could be close.
Traders on Friday raised their bets on a Fed rate hike after data showed US consumer prices accelerated in August. Markets were pricing an 86% chance of a hike at Wednesday’s meeting and another increase later in the year, according to the CME FedWatch tool.
“The Fed could decide to wait, but that is complicated by its October meeting being just ahead of the U.S. midterm elections and waiting until December to move will be too long,” said Shane Oliver, chief economist and head of investment strategy at AMP.
The euro was last at $1.1590, while sterling stood at $1.3524. The US dollar index, which measures the greenback against six major currencies, was steady at 99.15 after two consecutive weeks of modest declines.
US Treasury yields remained near multi-year highs, with the two-year yield easing slightly to 4.6148% after rising 26 basis points last week. September 14, 2026
The USD/MYR exchange rate rose to 4.0713 on September 14, 2026, up 0.02% from the previous session. Over the past month, the Malaysian Ringgit has weakened 0.26%, but it's up by 3.21% over the last 12 months. - September 14, 2026
