Oil Prices Rise Amid Tensions in Strait of Hormuz and Bab al-Mandab
Oil prices rose in Wednesday’s trading following escalating tensions in the Strait of Hormuz and Bab al-Mandab, approaching their highest level in five weeks. This development has heightened concerns over potential disruptions in global energy supply.
Brent crude futures increased by nearly one dollar to reach $91.51 per barrel. Meanwhile, U.S. West Texas Intermediate crude rose about 30 cents, trading at $84.64 per barrel.
The upward trend intensified after the United States targeted sites in southern and western Iran, with Tehran responding by announcing attacks on U.S.-linked facilities in Bahrain, Kuwait, and Jordan. These developments have raised fears of a wider conflict and its impact on crucial energy transit routes.
At the same time, Yemen’s Houthi movement (Ansar Allah) declared a naval blockade against Saudi Arabia and threatened to target Saudi oil tankers in the Bab al-Mandab Strait.
Following a decrease in tanker traffic through the Strait of Hormuz after the U.S.-Iran ceasefire collapsed earlier this month, the Bab al-Mandab passage in the southern Red Sea had become an increasingly important route for Saudi oil exports. This route now faces new security risks.
