Oil prices climbed on Tuesday after Libya’s National Oil Corporation (NOC) said operations were suspended at three oil fields, adding to concerns around disruptions to crude supplies through a key pipeline in Saudi Arabia. 

By 09:45 ET (13:45 GMT), benchmark Brent crude futures had gained 1.7% to $107.59 a barrel, while West Texas Intermediate crude futures advanced by 2.2% to $103.59 a barrel.

The NOC said members of the Petroleum Facilities Guard, which is responsible for securing Libya’s oil sites, closed a vale on the vital hamada-Zawiya crude-loading pipeline, Reuters reported. The NOC may declare force majeure should the value remain closed or other fields are shut down, the news agency added.

 Gold prices dropped on Tuesday, slipping below $4,300 an ounce, as surging oil prices fueled inflation concerns ahead of the Federal Reserve’s much-anticipated monetary policy decision this week. 

At 09:28 ET (13:28 GMT), spot gold had fallen by 0.3% to $4,287.81 an ounce, while gold futures declined 0.6% to $4,327.70 an ounce.

The yellow metal sank to a five-week low on Monday, as ongoing tensions in the Middle East sparked a fresh climb in oil prices to around four-month peaks. Worries have abounded that elevated energy costs could drive up inflation, persuading central banks -- including the Fed -- to hike interest rates in response. 

The U.S. dollar climbed to its highest level in over a week on Tuesday, as foreign exchange desks aggressively built in bets for a Federal Reserve interest rate increase this week amid rising Treasury yields and a fresh surge in crude oil prices. 

The Dollar Index, which tracks the greenback against a basket of six major currencies, inched up 0.24% to hover at over one-week highs around 99.60.

In contrast, the euro languished at one-month lows, down 0.1% on the day to trade near $1.1539. Foreign exchange traders continued to weigh euro area stagflation risks against a hawkish greenback, even after the European Central Bank increased borrowing costs by a quarter point to 2.50% last week.

NEW YORK, Sept 14 (Reuters) - Oil prices climbed over 2% on Monday as worries about energy supplies mounted following new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East.

Brent futures rose $2.72, or 2.6%, to $107.33 per barrel at 11:39 a.m. EDT (1539 GMT). U.S. West Texas Intermediate (WTI) crude rose $2.51, or 2.5%, to $102.56.

Both benchmarks have been technically overbought for more than a week and WTI was on track for its highest closes since May 19.