Oil prices have climbed above $108 a barrel after a series of drone attacks, launched from Iraq's territory, forced Saudi Arabia to close its east-west crude pipeline. Gas prices also increased.
Saudi traders have indicated that the kingdom could deplete its oil stocks for export within days if the pipeline does not reopen. The pipeline is used to reroute approximately 4 million barrels a day, representing about 4% of global supply.
The attacks occurred as Iran-aligned Houthi forces in Yemen launched several attacks against Saudi Arabia and captured the strategic island of Perim in the Bab al-Mandab strait on Sunday, expanding their control of the waterway.
Iraq's government confirmed the attacks originated from its territory and has initiated an investigation. The US president, Donald Trump, stated his belief that Tehran was responsible.