SerpApi.Org
Oil prices climbed to close to $100 a barrel on Thursday after Yemen’s Houthi militants claimed attacks on two Saudi Arabian tankers in the Red Sea.
West Texas Intermediate’s contract for September delivery advanced almost 4% to $89.97 a barrel, while Brent crude’s front-month contract rose more than 4% to $98.20 a barrel. The U.S. benchmark reached its highest level in six weeks and the global benchmark hit prices not seen in two months.
Economists at Handselbanken led by James Sproule wrote in a note on Thursday that Brent crude’s existing gain of about 30% since the U.S. and Iran resumed fighting after the recent ceasefire is “a rise that looks set to continue” if the two carry on with strikes.
Yahya Saree, the rebels’ military spokesperson, said missile and drone strikes had been launched against the vessels, which he claimed in a post on Telegram “violated the blockade.” The Houthis had declared a maritime embargo on Saudi Arabia amid the war in Iran.
The U.S. Central Command then said it would be undertaking a 12th night of strikes against Iran, targeting maritime capabilities, missile and drone storage sites, coastal surveillance facilities and air-defense assets.
“The strikes further degrade Iran’s ability to attack civilian mariners and commercial vessels,” Centcom said in a statement.
The latest strikes bring further uncertainty to investors as to when shipping might resume at more typical levels through the Strait of Hormuz, with peace talks between Washington and Tehran no longer seeming imminent.
Strategists at RBC Capital Markets led by Peter Schaffrik wrote in a note on Thursday that, while reserves of oil are currently being released, we will get to a point in autumn where inventories can’t be depleted much more. They said this could represent a “crunch point” ahead of the winter heating season; however, as that’s a few months away, there are still enough supplies for economies to keep on functioning relatively normally.
