London: Oil prices surged to $100 a barrel for the first time since July, following a series of military strikes between the US, Iran, and Houthi forces in the Gulf region. The escalation has heightened concerns over the stability of global oil supplies, pushing Brent crude to its highest level in months.
According to BBC, the price increase was driven by overnight military actions, including the US striking five Iranian tankers in retaliation for Iran's targeting of a warship. In response, Iran's Revolutionary Guards reported attacks on eight tankers and two warships, as well as a US base in Jordan. The Guards announced plans for a new "prohibited zone" for shipping, extending beyond the Strait of Hormuz into the Arabian Sea.
The Iran-backed Houthis, meanwhile, reported dozens of Saudi strikes in Yemen, a day after their own drone and missile attacks caused fires at several Saudi oil facilities. The rising conflicts have led to increased oil prices and global petrol costs, with Brent crude reaching $100.70 a barrel, marking a 2.83% increase compared to the previous day.
Prior to the US and Israel's conflict with Iran, Brent crude was priced at approximately $70 a barrel. However, recent Iranian missile and drone attacks on commercial shipping and a US naval blockade of Iranian ports have effectively closed the Strait of Hormuz, a critical waterway for global oil and LNG shipments.
Houthi forces have also targeted Saudi energy infrastructure and tankers in the Red Sea, further compounding the situation. The US military's Central Command (Centcom) confirmed the destruction of four Iranian oil tankers in the Gulf of Oman and one near Kharg Island, following Iranian missile attacks on a US warship. The IRGC responded by launching missiles at US facilities in Jordan, although no casualties were reported.
The UK Maritime Trade Operations agency has reported several merchant vessels in the region being subjected to military activity, with Iraqi authorities extinguishing a fire on a tanker hit by a drone. IRGC spokesperson Hossein Mohebi announced plans for a new "prohibited zone" in the Sea of Oman and Arabian Sea, warning vessels to coordinate or face sanctions.
US Secretary of State Marco Rubio stated that Iran's attempts to target US naval ships would result in further losses for Iran, emphasizing the US's retaliatory stance. The situation has been further strained by the seizure of an uncrewed US submarine by Iran, and ongoing exchanges of fire between Saudi Arabia and Houthi forces in Yemen have resulted in significant casualties and displacement.
The Houthis' recent attacks on southern Saudi cities injured civilians and halted operations at oil facilities, with over 500 people reportedly killed and nearly 20,000 displaced in the ongoing conflict. The situation remains tense with no immediate resolution in sight.