Oil Prices Surge as Middle East Tensions Escalate and Saudi Pipeline Closes

Brent crude oil is trading up 2.8% at $107.50 a barrel, driven by escalating geopolitical tensions in the Middle East. Saudi Arabia has closed its East-West Crude Oil Pipeline (Petroline), a key export route bypassing the Strait of Hormuz with a 7 million barrels per day capacity, following drone attacks from Iraq. European gas prices have also jumped over 5%, pushing UK gas contracts to their highest since late December 2022.