Global oil prices extended their rally after fresh US military strikes on Iran and renewed attacks on oil tankers in the Red Sea heightened fears of supply disruptions across the Middle East.
Brent crude rose by $1.93, or around 2%, to reach $96 per barrel, its highest level since June 8. Meanwhile, US West Texas Intermediate (WTI) crude gained $1.44, or 1.7%, to trade at $88.27 per barrel.
The latest gains follow a strong performance in the previous trading session, when Brent crude settled more than $3 higher at $94.07 per barrel, while WTI also climbed nearly 3%, reflecting growing concerns among investors over escalating geopolitical tensions.
Oil markets have been driven higher after the United States launched a new wave of strikes on Iranian targets, while Yemen’s Houthi rebels intensified attacks on oil tankers in the Red Sea. The developments have raised concerns over the security of key shipping routes, including the Bab el-Mandeb Strait and the Strait of Hormuz, through which a significant portion of the world’s oil supply passes.
Energy analysts warn that any further escalation in the conflict or disruption to crude exports from the region could push oil prices above the $100-per-barrel mark. Higher crude prices are also expected to increase fuel costs, transportation expenses, and inflation worldwide, with oil-importing countries such as Pakistan likely to face additional pressure on their import bills and domestic petroleum prices.
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