Oil prices continue surge, rising 3% amid Saudi pipeline outage after attack

"Short of stopping both oil price affecting wars and curing the global refinery (capacity) problem, our fraternity is wondering where an inoculation against $120 Brent can be found," said PVM analyst John Evans, pointing to Russian refinery outages and falling stockpiles.

Yemen's Iran-aligned Houthis reached the strategic island of Perim on Friday, moving to tighten their control over Bab el-Mandeb.

Meanwhile, a vessel in the Strait of Hormuz was struck by a projectile, causing a fire and forcing the crew to evacuate, the British maritime security agency UKMTO said on Sunday.

Iran said one person was killed and four crew wounded aboard an Iranian commercial vessel struck off its coast.

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.