By: Economy Middle East

Oil prices climbed more than 2 percent on Thursday, reaching their highest level in over six weeks, after Yemen’s Houthis attacked oil tankers in the Red Sea and the United States carried out a fresh wave of strikes on Iran.

Brent crude futures gained $2.19, or 2.33 percent, to $96.26 a barrel by 4:11 GMT, marking their highest level since June 8. The benchmark had already surged more than $3 to settle at $94.07 in the previous session, just below a six-week peak.

Meanwhile, U.S. West Texas Intermediate (WTI) crude futures rose $1.65, or 1.9 percent, to $88.48 a barrel, extending gains after surging 3 percent in the previous session.

Global energy supply concerns grow as U.S.-Iran tensions escalate

Oil prices rallied after Iran’s Revolutionary Guards said an oil tanker caught fire following an explosion while attempting to navigate what they described as a mined route south of the Strait of Hormuz, adding that two other tankers had turned back.

In a statement, the Guards claimed the Strait of Hormuz was under their control and “completely closed” as U.S. military operations in the region continued, warning that no oil tanker would be permitted to enter or exit without prior coordination with Iran.

The escalation comes as the Iran-backed Houthis have expanded the conflict by threatening to target vessels transporting Saudi oil through the Bab el-Mandeb Strait and announcing a naval blockade on Saudi Arabia.

The Houthis’ naval blockade of Saudi Arabia in the Red Sea has heightened concerns over disruptions to global energy supplies beyond the Gulf, while a spokesperson for Iran’s Revolutionary Guards warned shipping companies in a post on X that the southern route through the Strait of Hormuz had been mined.

U.S. crude inventories rise to 411.7 million barrels

The renewed threat to Red Sea shipping could disrupt up to 5 million barrels per day of oil supplies, including a key route used by Gulf producers to bypass the Strait of Hormuz.

The U.S. military said it had carried out its 12th consecutive night of strikes on Iran, hours after President Donald Trump vowed to destroy an Iranian bridge or power facility each time Tehran fires on a vessel in the Strait of Hormuz, escalating tensions in the conflict.

In addition, U.S. government data showed an unexpected increase in crude inventories, with the Energy Information Administration (EIA) reporting that commercial crude stocks rose by 2.0 million barrels to 411.7 million barrels in the week ended July 17, against market forecasts for a decline.

Gasoline inventories also increased by 800,000 barrels, while distillate stockpiles climbed by 1.4 million barrels. Total commercial petroleum inventories rose by 11.6 million barrels during the period.