Oil Hits $100 a Barrel Again as Middle East Conflict Disrupts Red Sea Strait

Global oil prices surged past $100 a barrel on Thursday as escalating conflict in the Middle East disrupted crucial shipping lanes. Brent crude, the global benchmark, reached approximately $100.60 per barrel amid the ongoing U.S. war on Iran and intensified hostilities in the Red Sea.

The price hike was significantly influenced by attacks on Saudi oil tankers in the Red Sea by Yemen's Iran-backed Houthi rebels. The Houthis claimed responsibility for striking two tankers, which reportedly caught fire. These attacks have severely reduced oil tanker traffic through the vital Bab el-Mandeb strait, a key chokepoint for global energy supplies.

Adding to the supply concerns, the Strait of Hormuz remains closed to vessels. The U.S. and Iran have intensified their strikes against each other, vying for control of this critical passage, through which approximately one-fifth of the world's oil and gas transited in peacetime. This situation has triggered a scramble for alternative shipping routes.

In response to the continued attacks on shipping, U.S. President Donald Trump issued a strong warning, threatening "major military punishment" against the Houthi rebels should their actions persist. Meanwhile, gas prices in Canada reached a monthly high, averaging $1.77 per liter across the country, reflecting the global impact of these geopolitical tensions on energy markets.

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