Global oil prices surged on Thursday, with Brent crude climbing above $100 per barrel for the first time in months, as renewed security threats in the Red Sea fueled fears of disruptions to global crude supplies.
At the time of writing, Brent crude was trading at $100.10 per barrel, up $6.07 (6.45%), while U.S. West Texas Intermediate (WTI) rose $4.66 (5.37%) to $91.49 per barrel.
The rally followed claims by Yemen’s Iran-backed Houthi group that it had attacked two Saudi oil tankers near the Bab el-Mandeb Strait, one of the world’s most critical maritime chokepoints. The reported attacks prompted some vessels to reroute, raising concerns over shipping delays and higher transportation costs.
The Strait of Hormuz and the Bab el-Mandeb Strait together handle roughly one-third of the world’s seaborne crude oil trade, with an estimated 25-30 million barrels of oil passing through the two routes every day. Any prolonged disruption could force tankers onto longer routes, tightening supplies and increasing freight costs.
Oil prices have now climbed nearly 20 percent over the past two weeks as escalating geopolitical tensions in the Middle East continue to unsettle energy markets.
A sustained move above $100 per barrel could reignite global inflation by increasing fuel, transportation, and manufacturing costs, adding fresh pressure on economies already grappling with elevated prices.
