Escalating tensions in key oil transit routes push Brent crude futures to a near six-week high above $95 a barrel.
Brent crude futures surged 4.2% to $94.83 a barrel, reaching a session high of $95.24, as geopolitical risks intensified in the Middle East. U.S. West Texas Intermediate crude rose 4.33% to $87.99, with both benchmarks hitting their highest levels since June 11.
The rally followed U.S. military strikes on Iran for the 11th consecutive night and reports of Iranian drones being intercepted by Kuwaiti air defenses. Traders are also monitoring threats from Iran-backed Houthi militia to target Saudi oil shipments in the Bab el-Mandeb strait, adding pressure to key transit routes.
Market analysts highlighted the dual-strait risk, with the Bab el-Mandeb emerging as a potential flashpoint alongside the Strait of Hormuz. Reduced traffic through Hormuz has already elevated the importance of the Red Sea route for Saudi crude exports.