Oil prices climb as attacks on key export routes and Red Sea tensions heighten global supply risks.
West Texas Intermediate crude rose to $84.60 per barrel in Asian trading, extending gains amid escalating supply threats across multiple export hubs. The surge follows warnings from Washington of potential military retaliation if Iran-backed Houthi rebels disrupt Red Sea shipping, a critical alternative route for Saudi crude exports.
Prior sessions saw WTI stabilize near $84.50 after attacks on a Kuwaiti tanker in the Strait of Hormuz and drone strikes on Russia’s Caspian Pipeline Consortium terminal, which handles most of Kazakhstan’s oil exports. The Red Sea’s role as a bypass for Hormuz has grown, but persistent security risks remain.
Markets are pricing in heightened geopolitical risks, with traders monitoring further disruptions in the Middle East and Black Sea regions.