Oil prices climbed on Monday as Saudi Arabia's precautionary closure of a key pipeline, previously used to bypass the Strait of Hormuz during US-Iran tensions, added to global energy supply concerns following an attack on the kingdom's infrastructure.

Brent crude futures pushed toward $108 per barrel, extending a near 9% weekly gain, while West Texas Intermediate (WTI) crude approached $103. Supply worries also rippled through European natural gas markets, where prices jumped as much as 3.8% during the session.

Saudi Arabia announced late Friday that it had shut down its East-West pipeline as a preventive measure after coming under attack the previous day. There has been no indication yet of when flows might resume on the critical link.

The market's focus is on the duration of the closure. "Ultimately, it comes down to how long the halt persists," said June Goh, senior oil market analyst at Sparta Commodities SA. If flows through the line are restored quickly, the impact could be limited, as inventories at the Yanbu terminal on the Red Sea coast could be tapped. However, she noted that a prolonged shutdown could force production cuts.

On the diplomatic front, a meeting between Iran and several Gulf states scheduled for late Monday to discuss a temporary shipping route via the Strait of Hormuz was postponed, according to Omani Foreign Minister Badr Albusaidi. Bahrain had already said it would skip the gathering, citing the East-West pipeline attack among its reasons, while Axios reported that Riyadh also harbored reservations about the plan.

Traders were also assessing the regional fallout from the Houthi rebels' rapid expansion along Yemen's Red Sea coast. The Iran-backed group could gain greater leverage over shipping through the Bab el-Mandeb Strait, another vital global chokepoint for maritime commerce.

The precautionary closure of the East-West pipeline followed a series of strikes against Saudi targets. Crude prices have now surged 77% this year as the US-Iran conflict has spread across the Middle East, hampering exports and throwing shipping markets into turmoil.

The extended crisis is also delivering an inflationary shock to the global economy. Data released last week showed US consumer prices accelerated in August, raising the odds of another interest rate hike by the Federal Reserve.

Brent crude for November delivery rose 2.8% to $107.51 a barrel, while WTI for October delivery advanced 2.4% to $102.43 a barrel.