Oil Prices Soar on Fears of Red Sea Shipping Disruptions

Oil prices rose sharply on Thursday due to concerns about shipping disruptions in the Red Sea. The price of Brent crude futures increased by USD 3.04, or 3.83 percent, to USD 82.49 a barrel, while US West Texas Intermediate futures settled up USD 2.07, or 2.75 percent, to USD 77.29.

An Iranian parliament committee is reviewing a bill that would ban US and Israeli vessels from the Strait of Hormuz and fine violators up to a fifth of their cargo value.

This development has added to the geopolitical risks in the region, as tensions between Iran and its adversaries persist. Yemen's Houthi rebels have launched missile and drone attacks on Saudi targets, while Iran has threatened to attack critical energy infrastructure across the region if the US launches another attack on its territory.