Brent crude rose above the $100-per-barrel mark on Thursday, extending its recent rally as escalating security concerns in the Red Sea intensified fears over global oil supplies and disruptions to key shipping routes.
At the time of writing, Brent crude was trading at $100.10 per barrel, up $6.07 or 6.45 percent, while U.S. West Texas Intermediate (WTI) crude gained $4.66, or 5.37 percent, to $91.49 per barrel.
The latest surge followed claims by Yemen’s Iran-backed Houthi group that it attacked two Saudi oil tankers near the Bab el-Mandeb Strait, prompting some vessels to divert from one of the world’s busiest maritime chokepoints.
The Strait of Hormuz and the Bab el-Mandeb Strait together handle nearly one-third of global seaborne crude oil trade, with an estimated 25 to 30 million barrels of oil passing through the two routes each day. Any disruption to these critical waterways can force tankers to take longer routes, increasing shipping costs and raising concerns over global energy supplies.
Oil prices have climbed by nearly 20 percent over the past two weeks as traders continued to factor in mounting geopolitical risks and the possibility of prolonged disruptions to crude exports from the Middle East.
Analysts warn that a sustained move above $100 per barrel could add fresh inflationary pressures worldwide by increasing fuel, transportation, and manufacturing costs, potentially affecting economies already facing elevated price pressures.
