Oil Prices Soar as Middle East Tensions Escalate
Oil prices surged on Thursday after a series of tanker attacks in the Middle East fueled concerns about disruptions to global supplies. Brent crude futures rose $6.42, or 6.34%, to settle at $107.63 a barrel, while US oil topped $100 for the first time since May as West Texas Intermediate crude futures jumped $6.43, or 6.69%, to $102.48.
The attacks on shipping in the region have intensified in recent days, with Iran-aligned Houthis seizing control of Yemen's port of Mocha and restrictions remaining on Gulf traffic through the Strait of Hormuz. Analysts warn that the threat is no longer confined to a single choke point but now includes potential disruptions to regional export routes, oil production sites, and other energy infrastructure.
David Jorbenaze, global oil market lead at ICIS, noted that 'for months the bearish case rested on soft Chinese demand', but recent increases in Chinese purchases have boosted physical crude markets. If this trend continues, it could amplify the impact of any supply disruptions and drive prices higher.