Global oil prices have surged to their highest levels in five months, driven by escalating tensions in the Gulf region that threaten to disrupt crude oil supplies. Brent crude, the international benchmark, rose 3% on Thursday to reach $112 per barrel, a peak not seen since mid-May.
The price increase comes amid a series of attacks in Saudi Arabia and incidents involving vessels near the strategic Strait of Hormuz. On Wednesday, Yemen’s Houthi movement carried out attacks in Saudi Arabia, resulting in four deaths and eight injuries, including casualties at a civilian airport in Dammam and an oilfield targeted by a drone.
Iran’s Islamic Revolutionary Guard Corps has also been active, claiming responsibility for strikes on four vessels in the northern Gulf, accusing them of illegal oil transfers. Additionally, three other vessels reportedly encountered mines west of the Strait of Hormuz, with Iran warning that further provocations could lead to broader retaliatory measures against U.S. regional bases.
These developments have intensified concerns over the security of the Strait of Hormuz, a critical artery for global energy shipments. Previous disruptions in this area had already put upward pressure on oil prices earlier in the year, with crude reaching $126 per barrel in April before easing due to ceasefire hopes.
Despite oil exports from the Persian Gulf recovering above pre-conflict levels, increased pipeline shipments to regions like the Red Sea and Gulf of Oman have partially mitigated shipping disruptions. However, the latest attacks have reintroduced uncertainty regarding the stability of global oil supplies.
The impact of rising oil prices is also being felt in financial markets. Major stock indices in Europe and Asia saw declines on Thursday, as investors worried that higher energy costs could exacerbate inflation and maintain elevated borrowing costs. In the U.S., shares of American Airlines dropped after the company warned that soaring fuel prices could result in a financial loss this year, underscoring the wider economic ramifications.