Mubasher: Global oil prices jumped 2% in Monday's early Asia trade after political tension escalated between Saudi Arabia and Iran after the kingdom’s execution of a prominent Shiite cleric.
Saudi Arabia severed diplomatic ties with Iran on Sunday after protesters ransacked its embassy in Tehran.
Brent crude rose 2.5% to reach $38.50 per barrel.
The US crude increased 2.05% or 76 cents to $37.80 per barrel.
The oil price rise is mainly attributed to a flare-up in tensions between Iran and the Kingdom, said oil analyst and economist Mohammed Al-Shatti.
Al-Shatti added that pil prices are still weighed by the abundant supply as producers pump around 2.5 million barrels per day.
