Key facts
- Oil prices rose for a fourth consecutive day, reaching near six-week highs.
- Iran threatened to disrupt energy exports beyond the Strait of Hormuz.
- The Bab el-Mandeb Strait is a key chokepoint for global oil shipments.
- U.S. military operations targeted Iranian military infrastructure.
- Iran has been accused of attacking over 30 commercial vessels in three months.
- President Trump indicated potential intensification of military operations.
Oil prices continued to climb for a fourth straight session as escalating tensions between the United States and Iran raised concerns over further disruptions to global energy exports. Brent crude traded above $93 per barrel, and the U.S. benchmark, WTI crude, was above $87 per barrel, both hitting their highest levels since June 11.
The latest surge was fueled by Iran's threat to close "all other export corridors that benefit the US and its allies" beyond the Strait of Hormuz. This warning, coupled with U.S. military strikes against Iranian targets for the 11th consecutive evening, has heightened market anxiety.
Analysts are increasingly focused on the Bab el-Mandeb Strait, a critical chokepoint connecting the Red Sea to the Gulf of Aden, as a potential new area of disruption. Reports indicate that Iran-aligned Houthi rebels in Yemen may be prepared to block this passage, which is crucial for Saudi oil exports. Three Saudi oil tankers reportedly altered course in the Red Sea following Houthi threats.
President Trump has indicated that U.S. military operations are likely to intensify, with no current interest in negotiations. U.S. inventory data from the API showed an increase in crude and distillate stocks last week, while gasoline stocks declined.