Oil Prices Soar Above $107 as Middle East Tensions Escalate
Oil prices jumped more than 6% on Thursday, with Brent crude rising above $107 a barrel amid growing concerns over disruptions to oil supplies. The rise comes as markets grow increasingly concerned about oil supplies through the Strait of Hormuz due to escalating tensions between the United States and Iran.
The US military targeted five Iranian oil tankers on Wednesday after Tehran launched ballistic missiles towards a US Navy warship. Market participants are closely monitoring developments in the Strait of Hormuz, which is a critical shipping route for energy and trade.
Earlier this week, the Houthis reached the strategic port of Mokha near the Bab el-Mandeb Strait, adding to concerns over shipping through one of the Red Sea's main routes. Iran has also warned crews of ships near Kuwaiti and Bahraini ports to remain off their vessels, heightening concerns over shipping security.
The price of Brent crude futures rose about 6.3% to $107.63 a barrel by 18:30 GMT on Thursday.