Abu Dhabi: Oil prices surged to $100 a barrel for the first time since July, following retaliatory strikes between the United States and Iran in the Gulf region, and attacks by Yemen's Houthis on Saudi oil facilities.
According to BBC, the price of Brent crude, the global benchmark, soared after a series of overnight military actions intensified the ongoing conflict.
The United States reported strikes on five Iranian tankers in response to Iran's targeting of a warship. In retaliation, Iran's Revolutionary Guards launched attacks on eight tankers, two warships, and a US base in Jordan. The Guards also announced plans to establish a "prohibited zone" for shipping that would extend beyond the Strait of Hormuz into the Arabian Sea.
The Iran-backed Houthi rebels from Yemen reported numerous Saudi strikes, which came a day after they targeted Saudi oil facilities with drones and missiles. This escalation in the region has driven Brent crude prices to their highest level since the hostilities between Iran and the US resumed after a brief pause in July. On Wednesday afternoon, oil was priced at $100.70 per barrel, marking a 2.83% increase from the previous day.
Prior to the resurgence of conflict between the US and Iran in February, Brent crude was priced at approximately $70 a barrel. The situation worsened with Iranian missile and drone attacks on commercial shipping and a US naval blockade of Iranian ports, effectively closing the Strait of Hormuz—a crucial waterway through which a significant portion of the world's oil and liquefied natural gas shipments pass.
The Houthis have been targeting Saudi energy infrastructure and tankers since July, following the breakdown of a four-year ceasefire in Yemen. The increase in oil prices has led to rising petrol costs globally. The US Central Command (Centcom) reported that its recent strikes destroyed Iranian tankers linked to the Islamic Revolution Guard Corps in the Gulf of Oman and near Kharg Island.
In response to Iranian missile attacks on a US warship, US forces directed tanker crews to evacuate before striking the vessels. The Centcom confirmed that Iranian missiles targeted US maintenance facilities in Jordan, but were mostly intercepted by Jordanian forces. Iran's Revolutionary Guards claimed further attacks on US Navy destroyers and oil tankers, which Centcom has denied.
The UK Maritime Trade Operations agency reported several merchant vessels being hit by disabling fire in the region, with one vessel reportedly listing near Port Rashid in the UAE. Iraqi authorities contained a fire on a tanker hit by a drone in the Gulf.
Iranian state TV broadcasted an announcement from the Revolutionary Guards about the impending declaration of new prohibited maritime zones. US Secretary of State Marco Rubio stated that the US would continue to respond to Iranian aggression by targeting Iranian tankers, following reports of Iran seizing a US underwater drone in the Strait of Hormuz.
Meanwhile, Saudi Arabia and the Houthis have been exchanging fire, with the Houthis accusing Saudi Arabia of bombing a prison and launching further attacks on Saudi civilian and economic sites. Over 500 fatalities and nearly 20,000 displacements have been reported amid the escalating conflict.