Bab el-Mandeb Strike Sends Oil Prices Soaring Towards $100
A missile strike on a cargo ship in the Bab el-Mandeb Strait has sent global oil prices higher. Brent crude on the London exchange rose to $91.63 per barrel, while WTI reached $85.28 and Urals climbed to $84.60. Azerbaijan's Azeri Light is trading at an even higher price of $94.58 per barrel.
The attack, carried out by Houthi militants, has increased the danger in the Bab el-Mandeb Strait, alongside the already precarious Strait of Hormuz. The US Energy Information Administration reports that stabilization of the situation in the Strait of Hormuz is not expected in the immediate future due to a lack of progress in negotiations between Iran and the United States.
The risk of further disruptions to global oil supplies has pushed prices towards $100 per barrel, with some predictions suggesting they could reach $115-120 per barrel if a serious blockade occurs. The approaching winter season is expected to increase energy demand, putting additional pressure on prices.