Escalating US-Iran tensions and attacks on Saudi tankers lift Brent crude above USD90 as shipping routes face heightened risks.
Brent crude prices climbed above USD90 per barrel as geopolitical tensions in the Middle East escalate, raising concerns over global oil supply. Threats to critical shipping lanes, including the Strait of Hormuz and Bab el-Mandeb, have intensified following attacks on Saudi oil tankers and warnings to shipping firms from Iran and the US.
Recent hostilities follow the collapse of a US-Iran ceasefire agreement in June, leading to a sharp decline in tanker traffic through key chokepoints. Iran has warned against using alternative routes, while the US has threatened to target Iranian infrastructure if vessels are attacked. The Houthis have also targeted Saudi tankers in the Red Sea, further disrupting regional exports.
Market focus shifts to the potential for a broader energy shock if the conflict escalates, with Brent rebounding on heightened risk premiums.