Baku: Oil prices soared above $100 a barrel on Thursday amid escalating tensions in the Middle East, raising concerns about potential disruptions in oil shipments through critical maritime routes, including the Strait of Hormuz and Bab el-Mandeb.
According to Azerbaijan State News Agency, the international benchmark Brent crude reached $100.17 per barrel, marking a significant increase of approximately 6.5% from the previous close of $94.07. Meanwhile, the US benchmark West Texas Intermediate (WTI) rose to $91.54 per barrel, up about 5.46% from the previous session's $86.80. Brent crude futures achieved their highest level since May 27, driven by renewed warnings from Washington and Tehran alongside reported attacks on Saudi oil tankers.
US President Donald Trump issued a warning on Thursday, stating that Washington would hold Tehran accountable if the Yemeni Houthi group continued to target commercial vessels. Trump highlighted past US actions against the Houthis for their interference in commerce and trade, emphasizing the consequences Tehran could face due to its support for the group.
The situation intensified after Yemen's Houthi group claimed responsibility for a military operation targeting two Saudi oil tankers using ballistic and cruise missiles and drones. US Secretary of State Rubio urged the Houthis to refrain from involvement in the Iran conflict, suggesting that they were manipulated by Tehran.
Further escalating tensions, Iran's military issued threats to regional energy facilities if US attacks on Iranian infrastructure persisted. The Islamic Revolutionary Guard Corps (IRGC) reported striking US military bases in Kuwait and Jordan and claimed responsibility for an explosion involving an oil tanker in the Strait of Hormuz, leading to the abandonment of a southern shipping lane.
The US military acknowledged conducting another round of strikes on Iranian targets, marking the 12th consecutive night of such operations. Iranian media reported explosions in the country's southwest and south, including damage to infrastructure near the Bushehr nuclear power plant.
These developments have heightened concerns over the security of the Strait of Hormuz, a vital oil shipping chokepoint through which approximately one-fifth of the world's oil consumption passes.