Global oil prices climbed above $100 a barrel on Thursday for the first time since May as escalating conflict in the Middle East intensified concerns over disruptions to key global energy shipping routes.
Benchmark Brent crude extended gains for a fifth consecutive session after Yemen's Houthis said they had targeted Saudi oil tankers in the Red Sea, raising fears that another major energy corridor could face prolonged disruption.
The latest attacks come as the Strait of Hormuz, one of the world's busiest oil transit routes, remains under severe pressure, increasing concerns over global crude supplies.
Analysts warned that prolonged disruptions to shipping through both the Red Sea and the Strait of Hormuz could tighten supplies, fuel inflation and increase pressure on central banks to keep interest rates higher for longer.
"With both the Strait of Hormuz and the Red Sea now under increasing pressure, markets are bracing for the possibility that the conflict could disrupt key energy routes and keep oil prices elevated," market strategist Susannah Streeter said.
Shipping risks intensify
The Houthis said they had attacked two Saudi oil tankers in the Bab al-Mandeb Strait, while Saudi media later reported that one of the vessels had caught fire following the assault.
The attacks followed the group's warning that it would target vessels transporting Saudi oil, raising the prospect of further disruptions to global shipping.
Meanwhile, US President Donald Trump warned of a "major military punishment" if Houthi attacks on commercial shipping continue.
Market outlook
The renewed fighting between Iran and the United States has added to uncertainty across energy markets, with military operations continuing despite earlier ceasefire efforts.
Investment bank Goldman Sachs said Brent crude could exceed $120 a barrel later this year if disruptions to the Strait of Hormuz persist, while continued tensions in the Red Sea could further tighten global supplies.
The bank also expects oil prices to remain elevated in the
