Oil Prices Hit Multi-Month Highs as Tanker Attacks and U.S.-Iran Tensions Rattle Markets

Oil extends rally as geopolitical risks intensify

Global oil prices extended their strong rally on Thursday, with both U.S. West Texas Intermediate (WTI) and Brent crude reaching multi-month highs as traders reacted to escalating tensions in the Middle East.

WTI crude surged by nearly 4% to around $90 per barrel, extending gains for a fifth consecutive trading session and reaching its highest level since June 10.

Meanwhile, Brent crude surged approximately 5% to $98.5 per barrel, its highest price since May 22, as investors priced in growing risks of disruptions to global oil supplies.

The latest advance reflects mounting concerns that escalating military activity around key shipping routes could threaten energy exports from one of the world’s most critical oil-producing regions.

Tanker attack raises fears over Strait of Hormuz security

The latest spike in crude prices followed reports of another attack on commercial shipping near Saudi Arabia.

According to the UK Maritime Trade Operations (UKMTO) agency, an oil tanker caught fire after being struck roughly 70 nautical miles southwest of Al Shuqaiq along Saudi Arabia’s Red Sea coast.

Yemen’s Houthi rebels later claimed responsibility for the attack, saying they had targeted two Saudi tankers using drones and missiles. The group alleged the vessels had violated its self-imposed maritime blockade.

The incident has renewed concerns over the security of shipping lanes across the region, particularly as commercial vessels continue navigating waters close to conflict zones.

Although the attack occurred outside the Strait of Hormuz, investors fear further escalation could eventually disrupt one of the world’s busiest energy corridors, through which roughly one-fifth of global oil supplies transit.

Trump warns Iran as Tehran vows retaliation

Oil markets also reacted to increasingly aggressive rhetoric between Washington and Tehran.

Through his post of Truth Social, President Donald Trump warned that the United States would strike an Iranian bridge or power plant every time Tehran-backed forces attacked vessels transiting the Strait of Hormuz.

The warning signals another sharp escalation following the collapse of the previous U.S.-Iran ceasefire and has raised concerns that direct confrontation between the two countries could intensify.

Iran responded by warning that any U.S. strike would trigger retaliation against American-linked infrastructure and energy assets throughout the region.

The exchange of threats has significantly increased geopolitical risk premiums across commodity markets, prompting traders to bid up crude futures amid fears that military action could interrupt production or transportation of Middle Eastern oil exports.

Supply disruption concerns dominate market sentiment

The combination of tanker attacks, military threats, and uncertainty surrounding one of the world’s most strategically important shipping routes has shifted market attention squarely toward supply risks.

While global oil fundamentals have remained relatively balanced in recent weeks, geopolitical developments are increasingly driving price action as investors evaluate the possibility of disruptions across the Gulf region.

Should hostilities continue to escalate, analysts expect energy markets to remain highly volatile, with Brent crude edging closer to the psychologically significant $100 per barrel mark.

Source:: Oil Prices Hit Multi-Month Highs as Tanker Attacks and U.S.-Iran Tensions Rattle Markets