Oil prices climb after tanker struck off Saudi Arabia, Trump escalates Iran threats
Oil prices jumped on Thursday following reports of attacks on two tankers near Saudi Arabia. Brent crude futures surged past 98 dollars per barrel, while U.S. West Texas Intermediate crude moved above 90 dollars. These figures represent significant monthly gains for global energy markets as tensions in the Middle East escalate.
The United Kingdom Maritime Trade Operations reported a strike on a tanker roughly 70 nautical miles southwest of Al Shuqaiq. Yemen’s Houthis claimed responsibility for the incident, citing a maritime blockade against Saudi Arabia. The crew reportedly fought an onboard fire, and no casualties appeared in initial accounts. This event marks the first claim of its kind since the group announced naval restrictions.
Market movement follows a warning from Donald Trump regarding the Strait of Hormuz. He stated that the U.S. would target Iranian infrastructure, specifically bridges or power plants, in response to any future attacks on shipping. Iran responded with a threat to retaliate against U.S.-linked energy facilities and infrastructure throughout the region if those strikes occur.
Former U.S. ambassador to Saudi Arabia, Joseph Westphal, commented on the lack of clear strategic direction from Washington. He noted that the ongoing conflict places pressure on both financial resources and global shipping security. Analysts at HSBC pointed to the breakdown of the U.S.-Iran ceasefire as the primary cause for the recent volatility in energy prices, noting that market stability depends on whether diplomatic efforts can secure shipping lanes again.