Oil prices rise to six-week high as US-Iran tensions escalate

Oil prices climbed more than 1.5% on Thursday, hitting their highest level in over six weeks as geopolitical tensions flared between the United States and Iran. Brent crude futures rose 2% to $96 per barrel, marking the highest point since June 8. West Texas Intermediate crude also saw gains, increasing 1.7% to $88.27 after a nearly 3% jump on Wednesday.

The escalation follows a new round of US strikes on Iran, occurring just hours after President Donald Trump vowed retaliation against any Iranian attacks on ships in the Strait of Hormuz. Iran's Revolutionary Guards reported an oil tanker fire after an explosion in a suspected mined area south of the Strait, claiming the waterway remains under their control and is "completely closed" without Iranian coordination.

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The strait was under their control and 'completely closed' while U.S. actions continued in the region, warning that no tanker would be allowed to enter or leave without coordination with Iran.

Adding to the instability, Yemen's Iran-aligned Houthis have opened a new front by threatening vessels carrying Saudi oil in the Bab el-Mandeb Strait and announcing a naval blockade of Saudi Arabia. The Houthis claim to have targeted two Saudi oil tankers, forcing approximately 10 ships to retreat. Maritime security reports indicated one of the named vessels, the Saudi-flagged Encelia, was hit in the Red Sea. These actions threaten to disrupt global energy supplies beyond the Persian Gulf.

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The Houthis said they had carried out a military operation targeting two Saudi oil tankers, and maritime security reports said one of the vessels named by the group, the Saudi-flagged tanker Encelia, had been hit in the Red Sea.