Oil Jumps to 6-Week High as Mideast Tensions Threaten Supply

Oil prices surged more than 1.5% to their highest level in over six weeks on Thursday, driven by escalating military tensions in the Middle East that threaten to disrupt key global shipping lanes. The rally followed a new round of U.S. strikes against Iran and attacks on oil tankers by Iran-aligned Houthi militants in the Red Sea.

U.S.-Iran Hostilities Intensify

The U.S. military confirmed it conducted its 12th consecutive night of attacks on Iran, according to a Reuters report. The action came hours after U.S. President Donald Trump vowed severe retaliation for any Iranian attacks on shipping in the Strait of Hormuz, a critical chokepoint for global oil trade.

In response, Iran's Revolutionary Guards stated that an oil tanker had caught fire after an explosion in what they described as a mined route south of the strait. The Guards warned that the strait was "completely closed" and under their control while U.S. military actions continue, adding that no tanker would be allowed passage without coordinating with Iran.

Red Sea Becomes New Flashpoint

Separately, Yemen's Houthi group opened a new front by targeting vessels in the Bab el-Mandeb Strait, another vital maritime passageway. The group claimed it carried out a military operation targeting two Saudi oil tankers and announced a naval blockade of Saudi Arabia.

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Maritime security reports indicated that one vessel, the Saudi-flagged tanker *Encelia*, had been hit in the Red Sea. The Houthis also claimed to have forced approximately 10 ships to retreat from the area, an account that Reuters could not immediately verify. These actions risk broadening the conflict and disrupting energy supplies beyond the Persian Gulf.

Market Reaction and Price Levels

The heightened geopolitical risk premium sent crude benchmarks sharply higher, overriding bearish U.S. inventory data.

• Brent crude futures rose $1.93, or 2%, to $96 a barrel, the highest price since June 8.
• U.S. West Texas Intermediate (WTI) crude gained $1.44, or 1.7%, to trade at $88.27 per barrel.

The price increase occurred despite a report from the U.S. Energy Information Administration (EIA) showing that domestic crude stockpiles unexpectedly rose by 2 million barrels last week. Analysts polled by Reuters had forecast a 1.1 million-barrel draw, indicating that supply concerns are currently the dominant driver for oil markets.