Middle East Conflict Escalates, Driving Up Oil Prices
A fresh wave of hostilities in the Middle East has sent Brent crude prices higher after three days of calm. The Iranian military launched multiple ballistic missiles at US forces based in the region, prompting a joint response from CENTCOM and Saudi Arabian forces. The strikes targeted Iran-linked 'terrorist logistics and weapons sites' across eastern Iraq.
The US Central Command (CENTCOM) has redirected 18 commercial vessels to prevent them from entering or departing Iranian ports, while disabling two and boarding another to inspect their cargo.
Analysts at ING Bank warn that market turbulence is likely to continue as oil prices swing wildly due to the ongoing conflict. 'Oil prices are trading higher this morning following strikes on US troops and Saudi energy infrastructure,' they noted.
Saudi Arabia's state-owned oil company, Saudi Aramco, has shut its 400,000 b/d Jizan refinery after an attack by Yemen's Iran-aligned Houthi militants. The group also struck facilities in Yanbu, which is a critical hub for the country's crude exports.