Global oil prices surged past $100 a barrel on Wednesday, marking the highest level since July, as escalating hostilities between the United States and Iran intensified. The price hike follows a series of retaliatory strikes, including US attacks on five Iranian tankers in the Gulf of Oman and near Kharg Island, which were identified as part of a network funding the Revolutionary Guards. Tehran responded by targeting a US base in Jordan and claiming attacks on multiple vessels in the Strait of Hormuz.
Simultaneously, Yemen’s Houthi movement launched drone and missile strikes against Saudi Arabian energy facilities and civilian infrastructure on Tuesday. Saudi authorities reported that the attacks caused fires at oil installations, leading to a temporary suspension of operations and leaving 73 people injured. These developments follow the collapse of informal ceasefires in both the US-Iran and Saudi-Houthi conflicts.
US Secretary of State Marco Rubio defended the military actions, stating that Iran would continue to lose tankers for every attempt to target US naval ships. The regional instability has effectively closed the Strait of Hormuz, a critical maritime chokepoint for 20% of the world's oil and liquefied natural gas. While Brent crude later dipped slightly to $99.90, analysts warn that further flare-ups could drive prices higher.
