Crude oil prices jumped to a six-week high on Thursday, with Brent crude rising above $96 a barrel and US West Texas Intermediate crude rising above $88, as conflict in the Middle East showed no signs of abating.
Brent crude rose $1.93, or 2.05%, to trade at $96 a barrel, while West Texas Intermediate crude advanced $1.41, or 1.62%, to $88.24.The gains came after oil prices rose more than 3% in the previous session, pushing Brent to its highest level since June 8. New attacks on oil tankers in the Red Sea have increased concerns about global energy supplies.Investors remained focused on the escalating conflict after the US military carried out the twelfth consecutive night of strikes on Iran.
The attacks came hours after US President Donald Trump announced that the United States would destroy an Iranian bridge or power station every time Iran targeted a ship in the Strait of Hormuz, signaling a further escalation in the conflict.The Iranian Revolutionary Guard said that an oil tanker caught fire after an explosion while trying to pass through what it described as a mined road south of the Strait of Hormuz. According to the Revolutionary Guards, two other tankers abandoned their lane and turned back.
The Revolutionary Guard also said that the Strait of Hormuz is under its control and “completely closed” while US military operations in the region continue, warning that tankers will not be allowed to enter or leave without coordination with Iran.Concerns over supplies have worsened after the Iran-aligned Houthis expanded their campaign in the Red Sea.The group declared a naval blockade of Saudi Arabia and threatened ships carrying Saudi oil through the Bab al-Mandab Strait. It said it targeted two Saudi oil tankers in a military operation. Maritime security reports stated that one of the ships identified by the Houthis was the tanker flying the Saudi flag EnciliaIt was struck in the Red Sea.The Houthis also claimed that about 10 ships turned back after receiving warnings not to go to Saudi ports. Reuters said it could not immediately verify the story.These developments have heightened concerns about oil shipments through two of the world’s major sea routes, with an IRGC spokesman also warning shipping companies on the X that the southern route through the Strait of Hormuz has been mined.Meanwhile, although the price of crude oil has risen above $90 a barrel, it is still well below the peak of $126 reached earlier during the conflict.