Crude oil prices climbed for a fifth consecutive trading session on Thursday, with Brent crude approaching $100 per barrel for the first time in nearly two months after Houthi attacks on Saudi oil tankers in the Red Sea heightened fears of a wider disruption to global crude supplies.
In early European trading, Brent crude rose 4.21 percent to $98.03 per barrel, while West Texas Intermediate (WTI) advanced 3.16 percent to $89.57 per barrel, extending a rally that has lifted oil prices by almost 20 percent since hostilities between the United States and Iran escalated two weeks ago.
The latest gains were driven by growing concerns that the conflict is spreading beyond the Strait of Hormuz to the Bab el-Mandeb Strait, another strategic maritime corridor that links the Red Sea to the Gulf of Aden.
The Iran-backed Houthi movement claimed responsibility for attacks on two Saudi oil tankers near the Bab el-Mandeb, saying the vessels had violated a naval blockade imposed earlier this week.
According to reports, one tanker was transporting Saudi crude to India, while the other was carrying cargo destined for China.
“We targeted two Saudi oil tankers, named Encelia and Layla, for their violation of the blockade decision issued by the armed forces,” Houthi military spokesman Yahya Saree said.
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The attacks prompted at least two commercial tankers to abandon planned voyages through the Bab el-Mandeb, adding to mounting concerns over the security of one of the world’s busiest energy shipping lanes.
The latest developments represent a significant escalation in the Middle East conflict, with shipping risks now extending across both of the region’s major oil export routes.
The Bab el-Mandeb Strait has become increasingly important for Saudi Arabia after the kingdom redirected more than 70 percent of crude exports that previously transited the Persian Gulf to the Red Sea port of Yanbu, as tensions around the Strait of Hormuz intensified.
Any sustained disruption at the Bab el-Mandeb would therefore remove one of the few viable alternatives available to Gulf producers seeking to bypass Hormuz.
Analysts said the attacks have significantly increased the geopolitical risk premium in oil markets.
“The fact that the Houthi rebels reportedly attacked two Saudi tankers near the Bab el-Mandeb Strait outside Yemen has increased concerns about escalation,” Maya Westerlund, Strategy and Macro Research Intern at Sweden’s SEB, said in a market note.
The market rally also reflects growing concerns that further attacks on commercial shipping could reduce available crude supplies at a time when global demand remains relatively robust.
The renewed surge comes after weeks of escalating military action involving the United States, Iran and Iranian-backed groups across the Gulf and Red Sea.
