Oil Prices Soar as Middle East Shipping Risks Escalate

Oil prices surged on Wednesday as attacks on commercial vessels in the Red Sea and Gulf of Oman raised concerns over the security of major energy routes.

The gains came even as diplomatic efforts toward reopening the Strait of Hormuz showed signs of progress, with Brent crude futures rising 0.70% to $89.53 a barrel and U.S. West Texas Intermediate crude futures gaining 0.73% to $83.81 a barrel.

The latest pressure followed two separate incidents on Tuesday: Iran-backed Houthi forces attacked the Egyptian-owned, Tanzania-flagged cargo ship Tihamah in the Bab el-Mandeb Strait, resulting in six reported deaths and raising supply risks.

Hours later, U.S. forces fired on the Panama-flagged Vela Nova after the vessel allegedly ignored warnings while attempting to breach Washington's blockade of Iranian ports. The ship was disabled, but no immediate casualties were reported.