Oil Prices Surge 6% as Disruptions to Global Supplies Escalate

Oil prices surged by 6% on Thursday, with both major benchmarks trading above $100 a barrel, as concerns about disruptions to global supplies continued to escalate.

The largest spike in attacks on shipping since the Iran war began has fueled worries among traders that the situation could worsen, leading to further price increases. Brent crude futures hit their highest level since mid-May, rising by 5.8% to $107.08 a barrel.

The Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, posing a fresh threat to Red Sea traffic. The Strait of Hormuz remains restricted due to tanker attacks in the region, which have intensified in recent days.

Analysts say the rally's durability will depend on China, the world's largest crude importer, as its buying continues to recover. If Chinese demand remains strong, it could amplify the impact of any supply disruptions and drive prices higher.