Brent and WTI rise 2 percent as geopolitical risks and shipping disruptions heighten supply concerns in key export routes.
Oil prices climbed to their highest levels in five weeks, with Brent and WTI both gaining around 2 percent. The rally reflects escalating geopolitical tensions, including Houthi threats to block Saudi exports and recent attacks on tankers in the Strait of Hormuz and Red Sea.
Traders are pricing in heightened risks of sustained logistical disruptions rather than confirmed supply losses. Two Saudi crude tankers bound for Asia reversed course after Houthi threats, while Kazakh export disruptions via the CPC pipeline add to supply concerns. Goldman Sachs warned Brent could near $120 if Hormuz disruptions persist.
Market positioning appears stretched, with Brent in overbought territory, raising the potential for a sharp reversal if tensions ease. Rising freight and insurance costs further amplify supply risks.