Oil Prices Surge Near $100 Amid Red Sea Attacks on Saudi Tankers

Oil prices surged sharply on Thursday following attacks on Saudi oil tankers near Yemen, escalating tensions in the Red Sea region. Brent crude, the global benchmark, rose about 3% to $97.45 per barrel, nearing $100 for the first time since May. West Texas Intermediate (WTI) crude jumped approximately 4% to $89.85 per barrel, marking a one-month high.

The attacks were carried out by the Iran-backed Houthi rebels against two Saudi tankers, the ENCELA and LAYLIA, using ballistic missiles. These strikes have raised concerns about disruptions to vital maritime oil export routes in the Red Sea, a key global energy shipping corridor. Shipping companies have reportedly begun rerouting vessels away from the Bab el-Mandeb Strait amid fears of further attacks.

Analysts warn of a "double choke point" for the global oil market, as the Red Sea tensions compound ongoing instability at the Strait of Hormuz, another critical passage for oil exports. The Hormuz Strait remains a flashpoint in the conflict between Iran and the United States, with Tehran allegedly seeking to exert economic pressure by disrupting oil flows amid continuing US and Israeli military actions.

The escalation in the Middle East and potential further disruptions to shipping lanes are expected to keep energy prices elevated in the coming days, as investors closely monitor the security situation in the region.