Oil Prices Surge Amid Middle East Tensions and Disrupted Energy Flows
Oil prices are set to rise for the week as concerns about disrupted energy flows in the Red Sea and fears of further escalation in the US-Israeli war on Iran continue. Brent futures fell $1.12, or 1.11%, to $99.55 a barrel at 0648 GMT, but remain on course for a 13% advance this week.
The potential supply disruptions facing the market now are larger than at any time during the war, according to ING analysts. They note that not only have oil flows through the Strait of Hormuz essentially dried up, but there are clear risks to Saudi oil flows from the Red Sea.
The Iran-aligned Houthis had declared on Monday that they were imposing a naval blockade on Saudi Arabia, which had been diverting its oil via pipeline to get around Iran's closure of the Strait of Hormuz. US President Donald Trump vowed to 'hold Iran responsible' for any further attacks.