Houthi Attacks Fuel Oil Price Surge Amid Supply Fears

Oil prices surged on Thursday after Yemen's Houthi rebels claimed responsibility for attacks on Saudi oil tankers in the Red Sea and the Gulf of Aden. This move has compounded supply concerns amid lingering uncertainties over the Strait of Hormuz.

The West Texas Intermediate for September delivery increased by 2.07 U.S. dollars, or 2.75 percent, to settle at 77.29 dollars a barrel on the New York Mercantile Exchange. Meanwhile, Brent crude for October delivery gained 3.04 dollars, or 3.83 percent, to settle at 82.49 dollars a barrel on the London ICE Futures Exchange.

The attacks have heightened fears of supply disruptions, driving oil prices higher. Analysts warn that if drought conditions persist, supply chains in the chemical, steel, and mineral oil sectors could face significant disruptions, potentially forcing some manufacturers to scale back production.