Oil Prices Soar Amid Escalating Middle East Tensions
Oil prices surged on Thursday after attacks on shipping in the Middle East escalated. Brent crude futures rose to $105.26 per barrel, a 4% increase from Wednesday's close. This marks the first time since May that US oil has topped $100 per barrel, with West Texas Intermediate crude futures reaching $100.04.
The recent spike in attacks on shipping in the region has heightened concerns about supply disruptions. Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, posing a further threat to Red Sea traffic. The Strait of Hormuz remains restricted due to ongoing tanker attacks.
PVM analyst John Evans stated that the market's approach is clear: this conflict will last longer than anticipated. If oil supply and exports are diminished, prices remain elevated. US President Donald Trump warned that the US may hit Iran's Pickaxe Mountain, located near its heavily damaged Natanz uranium enrichment facility.