Global oil prices have surged to their highest level in five months amid escalating tensions in the Middle East. On Thursday, Brent crude, the international benchmark, rose by 3% to reach $112 per barrel, its peak since May. This increase follows a series of attacks in Saudi Arabia and incidents involving ships near the Strait of Hormuz, raising fears of potential disruptions in crude oil supplies.
The situation began with Yemen’s Houthi movement launching attacks on Saudi Arabian targets on Wednesday, resulting in the deaths of four individuals and injuries to eight others. Among the impacted sites were a civilian airport in Dammam and an oilfield hit by a drone.
In a related development, Iran’s Islamic Revolutionary Guard Corps reported that its forces had targeted four vessels in the northern Gulf, accusing them of participating in illegal oil transfers. Additionally, it claimed that three other vessels encountered mines west of the Strait of Hormuz, warning that further provocations might lead to a broader retaliation against U.S. bases in the region.
The mounting tensions have renewed concerns about the security of the Strait of Hormuz, a vital route for global energy shipping. Earlier disruptions in this area had previously driven oil prices up sharply, reaching $126 per barrel in April, before declining amid hopes for a ceasefire. Despite oil exports from the Persian Gulf recovering beyond pre-conflict levels, increased pipeline shipments to the Red Sea and Gulf of Oman have helped mitigate some shipping challenges. Nonetheless, the recent attacks have cast doubt on the stability of global supplies.
The rising oil prices are also impacting financial markets, with major European and Asian stock indices declining on Thursday. Concerns are growing that escalating energy costs could exacerbate inflation and maintain high borrowing costs. Among those affected, American Airlines saw its shares fall after warning that exceptionally high fuel expenses might lead to a loss this year, underscoring the broader economic implications of the oil price surge.