Oil prices jumped on Monday after attacks on crude facilities in Saudi Arabia sliced the kingdom’s production in half and sparked worries over the impact of an oil shock on economic growth, halting a positive run in world stock markets as investors reached for less-risky assets.
Increased demand for safe-haven U.S. debt pushed Treasury yields lower and the price of gold rallied nearly 1%.
The attack on Saudi Arabia shut down 5% of global crude output. U.S. officials blamed Iran and President Donald Trump said Washington was “locked and loaded” to retaliate.
Oil prices surged nearly 20% at one point on Monday, with Brent crude posting its biggest intraday gain since the 1990-1991 Gulf crisis, before paring gains.
U.S. crude rose 14.26% to $62.67 per barrel and Brent was last at $68.71, up 14.1% on the day.
The upheaval in the oil market, coupled with poor economic data from China, served to sour investors’ appetite for risky assets.
Gold rose after the attack on oil facilities in Saudi Arabia inflamed worries over the stability of the Middle East, boosting demand for assets seen as a haven from risk. Spot gold was up 0.82% at $1,500.7111 per ounce.