Brent Crude Price Surges as Houthi Attacks Escalate Tensions in Middle East

The price of Brent crude oil has surged above $105/bbl as tensions in the Middle East escalate. Houthi militants, backed by Iran, have intensified their attacks on Saudi Arabia's energy exports, while more vessels came under attack off Oman's coast.

Two commercial vessels were hit by projectiles near Khasab, Oman, causing a fire on one of them. The UKMTO agency reported that the status of the second vessel is unknown. Meanwhile, the Houthis have gained control of Yemen's port city of Mokha and seized islands in the Bab al-Mandeb Strait.

The situation has further exacerbated supply-related concerns, with analysts warning of disruptions to shipping around the Bab al-Mandeb Strait. This strategic location has become increasingly important as an alternative route to the Strait of Hormuz, which was previously closed due to Iran's conflict with the US.