Oil prices rise by more than 2 pct amid escalating Middle East tensions

International oil prices saw a significant increase on Monday, with gains of over two percent, driven by escalating tensions in the Middle East that have raised market fears regarding energy supplies.

As of 18:30 Beijing time, light crude oil futures for October delivery on the New York Mercantile Exchange rose by 2.61 percent, while November delivery Brent crude oil futures in London increased by 2.83 percent.

The primary catalyst for this price surge is the ongoing escalation of conflict in the Middle East. Following U.S. President Donald Trump's remarks on Sunday regarding potential actions against Iran and the possibility of controlling its oil, Iran reported that it had shot down a U.S. military drone over the Strait of Hormuz the next day.

Additionally, on Friday, Saudi Arabia announced the shutdown of its East-West Pipeline as a precautionary measure after it was subjected to multiple attacks a day earlier. The Saudi Ministry of Energy confirmed that these attacks targeted the pipeline in the country's central Riyadh region and western Medina region, causing several injuries.

Saudi Arabia has invested heavily in the East-West pipeline, which carries crude oil from its eastern fields to the Red Sea port of Yanbu, bypassing the Strait of Hormuz.

The U.S. dollar strengthened in late trading on Monday.

The dollar index, which measures the greenback against six major peers, added 0.27 percent to 99.388 at 15:00. (1900 GMT).

In late New York trading, the euro fell to 1.1557 dollars from 1.1596 dollars in the previous session, and the British pound declined to 1.3511 dollars from 1.3525 dollars in the previous session.

The U.S. dollar bought 154.05 Japanese yen, higher than 153.72 Japanese yen of the previous session. The U.S. dollar was down to 0.8163 from 0.8166 Swiss francs, and it climbed to 1.3902 from 1.3865 Canadian dollars. The U.S. dollar rose to 9.7412 from 9.7044 Swedish kronor.