Oil prices surge after tanker attacks off Saudi Arabia
Brent crude tops $98 as US-Iran tensions escalate in the Strait of Hormuz.
1Sharp rise in oil prices
Following attacks on two oil tankers off Saudi Arabia, Brent crude prices rose 4.6% to $98.44, while US crude gained 3.8% to $90.14. These levels mark the highest prices since late May, reflecting heightened market tensions.
2Houthi claims
Yemen's Houthis claimed responsibility for attacking two Saudi oil tankers with drones and missiles, alleging violations of their maritime blockade. However, the attacks could not be independently verified by third-party sources.
3US threats
Former US President Trump threatened to destroy an Iranian bridge or power plant for every attack in the Strait of Hormuz. This rhetoric has further escalated tensions after the collapse of the US-Iran ceasefire agreement.
4Iran's retaliation warning
An Iranian military source warned that any US strikes would trigger retaliatory attacks on US-linked energy infrastructure in the region. Such exchanges raise concerns about potential wider conflict in the Middle East.
5Market reactions
HSBC analysts noted that oil price volatility reflects renewed Strait of Hormuz tensions. They warned that shipping disruptions could drive prices even higher, depending on diplomatic developments in coming weeks.
6Global implications
Experts warn rising oil prices may fuel inflation and strain global economies. In the US, increasing gasoline prices could spark public backlash against current Middle East policies and military strategies.