Key Highlights

  • Brent crude climbed more than 2% to around $91.2 per barrel, the highest since June 10.
  • Prices extended gains for a third straight session amid intensifying supply concerns.
  • A tanker was reportedly struck near the Strait of Hormuz.
  • Houthi militants threatened to block Saudi maritime traffic in the Red Sea.

Brent crude climbed more than 2% to around $91.2 per barrel, the highest level since June 10, extending gains for a third consecutive session as supply concerns intensified across several key export routes.

What Happened

Markets continued to monitor the conflict between the US and Iran after Washington carried out a 10th consecutive day of strikes, with President Trump vowing Tehran "will pay" for attacks that killed American soldiers.

Another tanker carrying oil products was reportedly struck near the Strait of Hormuz, highlighting ongoing risks to shipping through the critical waterway.

Yemen's Houthi militants threatened to block Saudi maritime traffic in the Red Sea, prompting at least one Saudi crude tanker to reverse course. Beyond the Middle East, attacks on the Caspian Pipeline Consortium terminal on Russia's Black Sea coast also disrupted exports from Kazakhstan, one of the world's largest crude suppliers.

Market Reaction

Oil prices extended their rally for a third straight session as traders priced in the compounding risk from multiple disrupted export routes simultaneously, rather than a single isolated incident.

Saudi Arabia said it would take all necessary measures to safeguard its vessels in accordance with international law, underscoring the scale of the shipping security concerns driving the price move.

Outlook

With supply risks spanning the Strait of Hormuz, the Red Sea, and the Caspian Pipeline Consortium simultaneously, markets are likely to remain sensitive to further developments across all three chokepoints, according to the disclosed information.

Why is Brent crude trading near $91.20 a barrel?

Prices rose as supply concerns intensified across multiple export routes, including the Strait of Hormuz, the Red Sea, and Russia's Caspian Pipeline Consortium terminal, amid the ongoing US-Iran conflict.

How does Brent's move compare with WTI crude?

Both benchmarks climbed more than 2% to multi-week highs amid the same set of supply disruptions, though Brent trades at a premium to WTI.

How are Yemen's Houthi militants affecting oil markets?

They threatened to block Saudi maritime traffic in the Red Sea, prompting at least one Saudi crude tanker to reverse course.