Oil prices hit six-week high amid rising US-Iran tensions

Oil prices rose sharply on Thursday, reaching their highest level in more than six weeks as tensions in the Middle East increased.

Brent crude futures climbed $1.93, or 2%, to $96 a barrel, the highest level since June 8. US West Texas Intermediate (WTI) crude also rose $1.44, or 1.7%, to $88.27 a barrel.

The rise came as the United States carried out another round of strikes on Iran, while Yemen’s Iran-aligned Houthis threatened oil shipments in the Red Sea. The US military said the latest attacks marked the 12th consecutive night of strikes on Iran.

Iran’s Revolutionary Guards said an oil tanker caught fire after an explosion while trying to use what they described as a mined route south of the Strait of Hormuz. The Guards also said two other tankers turned back and warned that the strait remained completely closed to tankers without coordination with Iran.

Meanwhile, the Houthis said they had targeted two Saudi oil tankers and announced a naval blockade of Saudi Arabia. Maritime security reports said the Saudi-flagged tanker Encelia was hit in the Red Sea, although the Houthi claims could not be independently verified.

The growing tensions around the Strait of Hormuz and the Red Sea have raised concerns about possible disruptions to global energy supplies. However, US crude inventories increased by 2 million barrels last week, against analysts’ expectations of a 1.1 million-barrel decline.