Oil prices rise as Hormuz talks delayed

Oil prices climbed on Monday after talks on the Strait of Hormuz were postponed and Saudi Arabia shut down a major oil pipeline.

Brent crude for November delivery gained nearly three per cent to 107.60 dollars per barrel, approaching the 110-dollar level.

The increase came after prices edged lower on Friday following sharp gains in the preceding days.

Oman announced on Sunday that planned talks between Iran and several Gulf States over the Strait of Hormuz had been postponed.

Omani Foreign Minister Badr al-Busaidi said the postponement was aimed at creating conditions for consensus.

Saudi Arabia, the world’s largest oil exporter, has come under pressure following disruptions to major shipping routes and attacks on its oil infrastructure.

The kingdom suspended operations on its East-West pipeline as a precaution after drone attacks in the Riyadh and Medina regions.

The pipeline carries oil from the Persian Gulf to the Red Sea and provides an alternative export route that avoids the Strait of Hormuz.

Analysts warned that any further reduction in Saudi oil exports could drive crude prices higher.

Brent crude has gained nearly 80 per cent since the start of the year, although it remains below its late-April peak of more than 126 dollars per barrel.