BY COMFORT OGBONNA
Oil prices surged more than 1.5% during Asian trading on Thursday, reaching their highest levels in more than six weeks as escalating military tensions involving Iran, Yemen’s Houthi movement and the United States intensified concerns over potential disruptions to global crude supplies.
Brent crude futures rose by $2.20, or 2.3%, to $96.27 per barrel after settling above $94 in the previous session. The benchmark reached its highest level since early June as traders reacted to growing risks surrounding two of the world’s most important oil shipping routes.
U.S. West Texas Intermediate crude also advanced sharply, gaining $1.65, or 1.9%, to $88.48 per barrel after posting a 3% increase in the previous trading session.
The latest rally came after Iran’s Revolutionary Guards reported that an oil tanker caught fire following an explosion while navigating south of the Strait of Hormuz along a route they claimed had been mined. Iranian officials also said two additional tankers turned back from the area amid growing security concerns.
In a statement, the Revolutionary Guards declared that the Strait of Hormuz was under Iranian control and described the waterway as effectively closed while U.S. military operations continued in the region. Iranian authorities warned that no commercial tanker would be permitted to enter or leave the strait without coordination with Tehran.
The situation has further escalated as Yemen’s Iran-aligned Houthi movement expanded its campaign in the Red Sea, threatening to target vessels transporting Saudi crude oil through the Bab el-Mandeb Strait. The group also announced what it described as a naval blockade against Saudi Arabia, adding another layer of uncertainty to global energy markets.
The Bab el-Mandeb Strait and the Strait of Hormuz are among the world’s most strategically important maritime corridors for oil transportation. Together, they handle a substantial portion of global crude exports, making any disruption a major concern for energy markets and the broader global economy.
Market analysts said the simultaneous risks affecting both waterways represent one of the most significant geopolitical threats to oil supplies in recent years.
Priyanka Sachdeva, a senior market analyst at Phillip Nova, said oil markets are now confronting the unusual possibility of disruptions occurring at both strategic shipping chokepoints simultaneously.
She noted that geopolitical risk premiums have returned to crude markets but added that a prolonged price rally would likely require clear evidence of sustained shipping interruptions or meaningful losses in global oil production.
The Houthis claimed responsibility for an operation targeting two Saudi oil tankers in the Red Sea. Maritime security reports indicated that one of the vessels identified by the group, the Saudi-flagged tanker Encelia, had been struck during the attack.
The group also claimed that approximately 10 ships were forced to abandon their routes after receiving warnings against sailing to Saudi ports. Those claims have not been independently verified.
The renewed threats in the Red Sea have heightened concerns that shipping traffic could face additional delays or rerouting, increasing transportation costs and placing further upward pressure on global energy prices.
Energy researchers warned that disruptions to the Bab el-Mandeb Strait could affect up to 5 million barrels of oil shipments per day. The passage serves as a critical alternative route for Gulf oil exports that avoids the Strait of Hormuz, making simultaneous threats to both corridors particularly significant for global supply chains.
Meanwhile, military activity between the United States and Iran continued to intensify.
The U.S. military announced that it had completed its 12th consecutive night of strikes targeting Iranian positions. The operations followed statements from President Donald Trump, who warned that the United States would retaliate against Iranian actions targeting commercial shipping in the Strait of Hormuz by striking key Iranian infrastructure, including bridges or power facilities.
The escalating confrontation has increased fears that the conflict could spread further across the Middle East, threatening not only regional stability but also the uninterrupted flow of energy supplies that global markets depend upon.
Oil traders are closely monitoring developments in both the Persian Gulf and the Red Sea, as any prolonged disruption to tanker traffic could tighten global crude supplies, drive fuel prices higher and complicate efforts by central banks to contain inflation.
With geopolitical uncertainty continuing to dominate market sentiment, analysts expect oil prices to remain volatile as investors assess whether the current tensions evolve into sustained disruptions to global energy exports or ease through diplomatic efforts.
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