- Oil prices climbed after Iran-backed Houthi militants attacked two Saudi Arabian tankers in the Red Sea, escalating the Middle East conflict and threatening deeper supply disruptions.
- Brent crude advanced as much as 2.5% to trade near $96 a barrel after closing at a six-week high in the previous session.
- The Houthis claimed they targeted the tankers Encelia and Layla with cruise missiles, ballistic missiles, and drones, causing significant damage.
- US forces launched new strikes on Iran following the Houthi attacks, contributing to the rise in oil prices.
Oil prices surged following an attack by Houthi militants on two Saudi tankers, Encelia and Layla, in the Red Sea. The Houthis claimed responsibility, stating they targeted the vessels with missiles and drones, framing the assault as part of a tit-for-tat campaign against Saudi Arabia.345
Brent crude rose 2.5% to nearly $96 a barrel, while West Texas Intermediate increased 1.7% to above $88. This escalation comes amid ongoing US military actions against Iran and its allies, raising concerns over potential supply disruptions in the region.2
The Houthis described their operation as a response to a blockade, emphasizing their strategy of “siege-for-siege.” They reported significant damage to the tankers, with “huge balls of fire” erupting on board. This incident marks a significant escalation in the ongoing conflict, which has seen 12 consecutive nights of strikes in the region.
As tensions rise, Iran has warned that if it cannot sell oil, it will ensure that US allies in the Gulf face similar challenges. The situation remains fluid, with potential implications for global oil markets and regional stability.
“Brent crude advanced 2.5% to trade near $96 a barrel, its highest since June, while the US House passed a $1.15 trillion defense bill. The Houthis said they struck the tankers Encelia and Layla with cruise missiles and drones, causing explosions.”
