Oil prices rose more than 1.5% in Asian trade on Thursday to stand at their highest in more than six weeks, as Yemen’s Houthis targeted oil tankers in the Red Sea and the United States (US) launched a new round of strikes on Iran.
Brent crude futures rose $2.2 or 2.3%, to $96.27, the highest since June 8, having settled up more than $3 at $94.07 in the previous session, just shy of a six-week high.
US West Texas Intermediate crude climbed $1.65, or 1.9%, to $88.48, after Wednesday’s rise of 3%.
Iran’s Revolutionary Guards said an oil tanker caught fire after an explosion while attempting to follow a route they described as mined, south of the Strait of Hormuz, while two others had turned back.
In a statement the Guards said the strait was under their control and “completely closed” while US actions continued in the region, warning that no tanker would be allowed to enter or leave without coordination with Iran.
Besides the renewed conflict over control of the key waterway, the Iran-aligned Houthis have opened a new front by threatening to target vessels carrying Saudi oil in the Bab el-Mandeb strait and unveiling a naval blockade of Saudi Arabia.
Oil prices are facing a rare risk from simultaneous disruptions at both the Bab el-Mandeb and the Strait of Hormuz, said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
–Reuters–
