Global oil prices experienced a significant surge on Wednesday, reaching their highest levels in six weeks. Brent crude futures climbed to $93.24 a barrel, with a session high of $95.47, while US West Texas Intermediate (WTI) crude reached $86.18. These benchmarks have not seen such elevated prices since June 11, reflecting growing concerns over supply disruptions in key global shipping lanes.
Intensifying Conflict and Supply Chain Fears
The uptick in oil prices is directly linked to escalating geopolitical tensions in the Middle East. The US military confirmed it conducted an eleventh consecutive night of strikes targeting Iran. This action followed reports of the Kuwaiti army intercepting Iranian drones, underscoring a volatile regional security environment.
Adding to the market’s anxiety, President Donald Trump issued a stern warning regarding maritime traffic. He stated that the US would retaliate with force against any Iranian actions targeting ships in the Strait of Hormuz, a critical chokepoint for global oil transport. This threat heightens the risk associated with this vital waterway.
New Front Opens in the Bab el-Mandeb Strait
Beyond the Strait of Hormuz, a new threat has emerged from the Iran-aligned Houthi movement in Yemen. The Houthis have declared their intention to target vessels carrying Saudi oil through the Bab el-Mandeb
