Oil prices rose Monday after attacks shut a key Saudi oil pipeline and Houthi militants in Yemen tightened their grip on the Bab al-Mandeb Strait, adding pressure on Middle East crude-export routes already constrained by the U.S.-Iran conflict.

Front-month Brent crude oil futures rose 1%, to $105.68 a barrel, while front-month West Texas Intermediate settled up 1.3%, at $101.39 a barrel. The benchmarks ended the session well off earlier highs of $109.80 and $104.35, respectively.

President Trump said in a Truth Social post that Ukraine and Russia agreed to stop attacking each other's energy infrastructure, which led diesel futures to pull back from early highs. Nymex front month diesel futures settled practically flat, at $4.9615 a gallon, while gasoil on ICE Futures Europe slipped 0.2%, to $1,476.50 a metric ton.

"Prices have been elevated so much that any kind of a news flash can cause a drastic selloff," Dennis Kissler, senior vice president of trading at BOK Financial, said. There is most likely something behind Trump's comments, but "until there's concrete evidence that Ukraine is going to lighten up on Russia, or that we get more oil flow coming out of the Middle East, the market's going to remain extremely volatile," Kissler added.

Saudi Arabia's East-West Pipeline remained shut after multiple drone attacks last week. The pipeline carries crude from the kingdom's oil-producing east to the Red Sea coast, providing an important alternative export route with shipping through the Strait of Hormuz remaining constrained.

Trump also said Monday that oil is flowing through the Strait of Hormuz, and that Iran "wants to make a deal, quickly and badly."

The pipeline attack adds more pressure on a vital energy corridor in the region. Iran-backed Houthi militants last week seized Perim Island and the coastal town of Dhubab after capturing the strategic port city of Mokha, tightening their grip on the Bab al-Mandeb Strait and raising risks around Red Sea crude shipments.

Capital Economics said the pipeline closure could affect as much as 4% of global oil supply, with roughly 3 million barrels a day of crude still being exported from Yanbu before the shutdown. It kept its forecast for Brent to end the year at $100 a barrel but said risks now lie firmly to the upside, particularly if repairs prove lengthy or attacks on regional energy infrastructure intensify.

S&P Global Commodity Insights said crude and condensate flows through Bab al-Mandeb fell to 1.5 million barrels a day in August from 3.14 million in July, while crude loadings from the Saudi Red Sea port of Yanbu dropped to 2.8 million barrels a day from 3.9 million in the same period. Jack Kennedy, S&P Global Market Intelligence's head of Middle East and North Africa Country Risk, said Houthi gains around Mokha were unlikely by themselves to halt Saudi or regional exports but would erode the resilience of Saudi Arabia's Red Sea export route.

Kamco Invest said constrained shipping routes and low refined-product inventories have left oil markets particularly vulnerable to further geopolitical shocks. The firm said buyers in China and Singapore are sourcing crude from as far away as Latin America and West Africa, while South Korean refined products are taking longer routes to Europe as traditional trade patterns are disrupted.

Meanwhile, Rystad Energy said a prolonged outage at Yanbu would increasingly force a wholesale reallocation of global crude flows. A one-month disruption could keep roughly 78 million to 120 million barrels out of the export market but could initially be managed through inventory draws, cargo deferrals and spot purchases. At two months, however, replacement barrels from the U.S., Canada, Brazil and West Africa would have to travel much farther to Asian refiners, tightening tanker availability and creating scarcity even if sufficient crude remained available globally. A three-month outage could eventually force less flexible Asian refiners to cut runs as replacement grades become unavailable, unsuitable or uneconomic after freight.

The International Energy Agency on Friday lowered its 2026 estimates for global oil supply and demand, saying it expects supply to fall by 5.7 million barrels a day on average, while demand declines by 2.5 million barrels a day. The Organization of the Petroleum Exporting Countries forecasts global oil-demand growth of around 400,000 barrels a day this year, while expecting growth to accelerate to roughly 2.4 million barrels a day in 2027.