Middle East Conflict Sends Oil Prices Soaring for Fifth Straight Day

International oil prices surged for five consecutive trading days due to escalating conflict in the Bab el-Mandeb Strait, a key maritime logistics hub in the Middle East. The West Texas Intermediate (WTI) crude futures for October delivery closed at $91.48 per barrel on September 4, up 0.20% from the previous session.

The direct cause of the surge is the intensified armed conflict near the Bab el-Mandeb Strait, which connects the Red Sea and the Gulf of Aden. The clash between Yemeni government forces and the pro-Iranian Houthi rebels resulted in at least 129 deaths in a single day.

The instability in this region poses an immediate threat to global energy supply chains and could have massive repercussions for the international economy, leading to growing concerns in the international community. U.S. President Donald Trump's remarks hinting at the possibility of attacking 'Pickaxe Mountain,' where Iran is suspected of housing underground nuclear facilities, also fueled the increase in oil prices.