Oil Prices Soar Amid Middle East Conflict Escalation

Oil prices surged over 3% on concerns that global energy supplies could be severely impacted by ongoing conflict in the Middle East. The situation worsened when a meeting between Iran and Gulf powers was postponed, fuelling fears of an escalation in tensions.

The postponement came after Houthi strikes on Saudi Arabia's oil pipeline forced its closure, with Riyadh saying it has enough stored at its Red Sea port to maintain exports for just five to seven days. This could jeopardise up to 4% of global oil supply, adding to the millions already lost due to disruptions in the Strait of Hormuz.

The UKMTO reported a vessel was struck by a projectile while passing through the strait, causing a fire and forcing its crew to evacuate.