Middle East War Escalation Hits Oil Supplies

The conflict in the Middle East has escalated, affecting oil supplies and global markets. Saudi Arabia and Yemen's Iran-backed Houthis exchanged strikes across their border on Thursday, with Yemenis fleeing by boat to escape fighting.

Houthi-controlled television reported Saudi airstrikes in Hajjah province near the Red Sea coast, while a Yemeni living in Saudi Arabia was killed by debris from a drone intercepted over Taif. The US Navy is trying to guide ships through the Strait of Hormuz, where a fifth of global oil and liquefied natural gas passed before the war.

The spread of the conflict has raised concerns about oil supplies, jeopardizing the main alternative Red Sea route for Gulf exports while traffic through the Strait of Hormuz remains constrained. Global crude prices eased slightly on Thursday but remain well above $100 a barrel after reaching their highest levels since May.