DOHA/ISLAMABAD (MNN); Global oil prices continued their upward trend on Thursday, with Brent crude rising above $100 per barrel for the first time since May, as escalating tensions in the Middle East raised fresh concerns over disruptions to global energy supplies.
Oil prices extended gains for a fifth consecutive session after Yemenâs Houthi movement claimed responsibility for attacks on two Saudi Arabian oil tankers in the Red Sea, further intensifying fears over the security of key international shipping routes.
The latest attacks have heightened concerns about global crude exports, particularly as the Strait of Hormuz remains under severe disruption amid renewed fighting between the United States and Iran. With the Red Sea and Bab al-Mandeb Strait also facing security threats, energy markets are increasingly worried about potential supply shortages.
Market analysts warned that prolonged disruptions to these critical maritime routes could push oil prices even higher, increasing inflationary pressures worldwide and raising the likelihood of further interest rate hikes.
Susannah Streeter, Chief Investment Strategist at Wealth Club, said investors remain cautious as the global energy crisis deepens.
She noted that with both the Strait of Hormuz and the Red Sea under mounting pressure, markets are preparing for sustained disruptions to vital oil shipping lanes that could keep energy prices elevated for an extended period.
The Houthis said they carried out a military operation targeting two Saudi oil tankers in the Red Sea after announcing a naval blockade on Saudi oil shipments through the Bab al-Mandeb Strait. Saudi media later confirmed that one of the vessels caught fire following the attack.
US President Donald Trump warned the Houthis of “major military punishment” if attacks on commercial shipping continue.
Meanwhile, the ceasefire agreed between Iran and the United States in mid-June has effectively collapsed, with fighting resuming around the strategically important Strait of Hormuz.
The US military launched its 12th consecutive night of strikes against Iranian military targets, while Iran continued attacks on American military assets and allied countries across the region.
Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed that the Strait of Hormuz is under its control and declared the waterway “completely closed,” warning that no oil tanker would be allowed to pass without coordination with Tehran.
Investment bank Goldman Sachs warned that Brent crude prices could exceed $120 per barrel during the fourth quarter if disruptions in the Strait of Hormuz continue into next year.
The bank also forecast that oil prices are likely to remain elevated through July and August due to declining global inventories, lower Middle Eastern oil production, increased summer fuel demand and reduced releases from strategic petroleum reserves.
