Oil Prices Soar to Highest Levels Since May Amid Shipping Disruptions
Oil prices surged to their highest levels since May on Thursday, as attacks on shipping and disruptions to supplies continued to weigh on markets. The price of Brent crude futures settled at $107.63 a barrel, while US oil topped $100 for the first time since May.
The increase was driven by concerns over further disruptions to supply, particularly in the Red Sea region where the Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday. This poses a fresh threat to traffic in the area, adding to existing risks from tanker attacks and restricted Gulf trade.
'The threat is no longer confined to a single choke point,' said Simon-Peter Massabni, head of business development at XS.com. 'Now it includes the potential for disruptions to ripple across regional export routes, oil production sites, and other energy infrastructure.'
The rally's durability will depend on China, the world's largest crude importer, which has stepped up purchases in recent weeks after months of subdued demand.