Oil prices climbed more than 1.5 per cent in Asian trading on Thursday, reaching their highest level in over six weeks as renewed attacks and threats to shipping raised concerns about disruptions to global energy supplies.
Brent crude futures rose $2.20, or 2.3 per cent, to $96.27 a barrel by 6:27 a.m. Saudi time, their highest level since June 8. The benchmark had gained more than $3 in the previous session to settle at $94.07.
US West Texas Intermediate crude rose $1.65, or 1.9 per cent, to $88.48 a barrel after climbing 3 per cent on Wednesday.
The latest gains came as tensions intensified around two major shipping routes. Iran’s Revolutionary Guards said an oil tanker caught fire after an explosion while attempting to follow a route south of the Strait of Hormuz that they described as mined. Two other tankers reportedly turned back.
The Guards said the Strait of Hormuz was under Iranian control and “completely closed” while US military operations continued in the region. It warned that tankers would not be allowed to enter or leave without coordination with Iran.
At the same time, Iran-aligned Houthi forces in Yemen threatened vessels carrying Saudi oil through the Bab el-Mandeb Strait and announced what they described as a naval blockade of Saudi Arabia.
“The geopolitical risk premium has returned, but a sustained rally will require evidence of prolonged shipping disruptions or meaningful supply outages,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
The Houthis said they had carried out an operation against two Saudi oil tankers and claimed that one vessel, the Saudi-flagged Encelia, was hit in the Red Sea. The group also said it had forced around 10 ships to turn back after warning them against sailing to Saudi ports.
The claims could not immediately be independently verified.
The prospect of simultaneous disruption in the Bab el-Mandeb and Strait of Hormuz has increased concern in global oil markets. The Red Sea route is an important alternative passage for Gulf oil shipments, while the Strait of Hormuz handles a major share of global energy trade.
Saul Kavonic, head of energy research at MST Marquee, said the Houthi threat could potentially disrupt up to 5 million barrels per day of oil supply.
The US military said it had completed its 12th consecutive night of attacks on Iran. President Donald Trump also warned that further Iranian attacks on ships in the Strait of Hormuz would trigger strikes on Iranian infrastructure, increasing concerns over a wider escalation.
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