Brent crude futures climbed to within touching distance of $100 a barrel on Tuesday as fighting in the Middle East intensified, raising fears of further disruption to oil supplies through the Strait of Hormuz and the Red Sea.
The international benchmark reached its highest level in six weeks, trading around $99.30 a barrel, while US West Texas Intermediate crude rose by roughly 3% to about $94.25. The latest gains came as investors assessed the risk of a wider regional conflict involving Iran, the United States and its allies.
Yemen’s Iran-backed Houthi movement attacked four cities in southern Saudi Arabia, with drones and missiles targeting a military base and facilities linked to state-owned oil giant Saudi Aramco. Saudi authorities said 73 people were wounded and that fires broke out at several energy installations.
The attacks affected Khamis Mushait, Abha, Najran and Jazan, a major Red Sea port close to the Yemeni border. Operations at some facilities were temporarily halted, according to reports, adding to concerns about the security of Saudi oil exports as shipping through the Strait of Hormuz remains severely restricted.
Brent has risen sharply in recent sessions as traders have priced in a higher risk premium linked to the conflict. The benchmark remained below $100 despite the escalation, but its approach to that level underlined the growing pressure on global energy markets.
Oil’s advance also weighed on US shares, while the Japanese yen strengthened to a seven-month high against the dollar as investors moved towards assets viewed as safer during the renewed market turbulence.
