Oil Prices Soar as Iran Conflict Expands to Red Sea

The US-Iran conflict escalated on Thursday as Iran-backed Houthis launched a missile and drone attack on two Saudi Arabian oil tankers in the Red Sea. This expansion of oil disruptions beyond the Strait of Hormuz sent oil prices soaring, with September WTI crude oil (CLU26) closing up +5.36 (+6.17%) and September RBOB gasoline (RBU26) closing up +0.0793 (+2.44%).

The attack on Saudi oil tankers threatens oil shipments in the Red Sea, particularly from Yanbu, a key export hub that has been used since shipping through the Strait of Hormuz was severely disrupted.

President Trump stated that he is considering a 'massive attack' that would be 'bigger than ever before', which could further escalate tensions and impact global oil supplies.