Oil prices surge over 2% as US-Iran clashes and Houthi blockade threats raise fears of prolonged Middle East supply disruptions.
Brent crude futures jumped $2.12, or 2.4%, to $91.34 a barrel, marking a five-week high amid escalating tensions in the Middle East. US West Texas Intermediate crude rose $1.80, or 2.2%, to $85.03, nearing its highest level since mid-June. Both benchmarks extended gains for a seventh consecutive session, entering overbought territory.
The rally follows overnight US airstrikes on Iranian targets and retaliatory attacks by Tehran on US sites in Bahrain, Kuwait, and Jordan. Yemen’s Iran-aligned Houthis also threatened a naval blockade of Saudi Arabia, prompting two Saudi crude tankers bound for Asia to reverse course in the Red Sea. Analysts warn of a potential prolonged stalemate, heightening risks to global energy flows.
Market sentiment remains cautious as traders weigh the possibility of a negotiated de-escalation against the risk of sustained conflict. The Strait of Hormuz, a critical chokepoint for oil shipments, faces renewed threats after reports of a tanker being hit in the region.