Global oil prices surged to a five-month high on Thursday, driven by escalating geopolitical tensions in the Gulf region. The attacks in Saudi Arabia, coupled with incidents involving vessels near the Strait of Hormuz, have sparked fears of further disruptions to crude oil supplies worldwide.
Brent crude, the international oil price benchmark, jumped 3% to $112 per barrel, marking its highest level since May 18. This spike in prices follows a series of attacks carried out by Yemen’s Houthi movement on targets within Saudi Arabia. The assaults reportedly resulted in the deaths of four individuals and injuries to eight others, impacting locations such as a civilian airport in Dammam and an oilfield targeted by a drone.
In a parallel development, Iran’s Islamic Revolutionary Guard Corps announced that its forces had targeted four vessels in the northern Gulf, accusing them of participating in illegal oil transfers. Additionally, three other ships encountered mines west of the Strait of Hormuz, with Iran warning that further provocations could lead to an increased military response against US bases in the region.
These developments have reignited concerns over the security of the Strait of Hormuz, a crucial artery for global energy shipments. Earlier incidents disrupting traffic through this vital passage had previously driven oil prices as high as $126 per barrel in April. Although there was a temporary decline amid hopes for a ceasefire, recent events have cast doubt on the stability of global oil supplies.
The rising oil prices have also exerted pressure on financial markets. Major stock indices in Europe and Asia fell on Thursday, as investors worried that escalating energy costs could contribute to inflation and maintain high borrowing costs. In the United States, American Airlines shares dropped after the company warned that soaring fuel expenses might lead to a financial loss this year, underscoring the broader economic implications of elevated oil prices.