Oil prices increased by over 1.5%, reaching their highest level in more than six weeks on Thursday. This uptick followed the United States initiating a new series of strikes on Iran, while Yemen’s Houthis targeted oil tankers in the Red Sea. Brent crude futures increased by $1.93, representing a 2% rise, reaching $96 by 0011, marking the highest level since June 8. It had closed more than $3 higher at $94.07 in the prior session, nearing a six-week peak. U.S. West Texas Intermediate crude increased by $1.44, representing a 1.7% rise, reaching $88.27 following a nearly 3% gain on Wednesday.

The U.S. military announced it has conducted a 12th consecutive night of strikes against Iran, following U.S. President Donald Trump’s declaration to target an Iranian bridge or power plant in response to any attacks on ships in the Strait of Hormuz, thereby escalating tensions in the ongoing conflict with Iran. Iran’s Revolutionary Guards reported that an oil tanker ignited following an explosion while navigating what they characterised as a mined route south of the Strait of Hormuz, noting that two additional tankers had reversed course. The Guards asserted that the strait was under their control and “completely ⁠closed” as U.S. actions persisted in the region, cautioning that no tanker would be permitted to enter or exit without coordination with Iran.

In addition to the escalated tensions surrounding the pivotal waterway, the Iran-aligned Houthis have initiated a new phase in the conflict by issuing threats against vessels transporting Saudi oil in the Bab el-Mandeb Strait and have declared a naval blockade of Saudi Arabia. The Houthis announced the execution of a military operation aimed at two Saudi oil tankers. Maritime security reports indicated that one of the vessels identified by the group, the Saudi-flagged tanker Encelia, sustained damage in the Red Sea.

The Houthis claimed to have compelled approximately 10 ships to withdraw and return following their warnings to vessels regarding navigation to Saudi ports. The Houthis’ naval blockade on Saudi Arabia in the Red Sea poses a significant risk to global energy supplies extending beyond the Gulf. Concurrently, a spokesperson for Iran’s Revolutionary Guards cautioned shipping companies via a post on X that the southern route of the Strait of Hormuz is mined. According to the Energy Information Administration, U.S. crude stocks increased by 2 million barrels last week, attributed to a decline in refinery runs, a decrease in crude exports, and a rise in imports. Analysts in a Reuters poll had projected a reduction of 1.1 million barrels.