Escalating military tensions in the Middle East pushed global oil prices higher. Brent crude rose above $96 a barrel, reaching its highest level in a month and a half.
US President Trump threatens Iran's infrastructure
US President Donald Trump stated that if Iran attacks ships passing through the Strait of Hormuz, the Washington administration would target Iran's infrastructure. Iran, meanwhile, signaled it could retaliate against energy assets linked to the US. These mutual statements further heightened tensions in the Strait of Hormuz, one of the world's most critical oil transit points.
Saudi oil tankers attacked in Red Sea
Another development that heightened tensions occurred in the Red Sea. Iran-backed Houthis attacked two Saudi oil tankers with missiles and drones. These attacks were recorded as the first to directly target oil tankers in the Red Sea. Security concerns grew in the Red Sea, one of the critical alternative routes for Saudi Arabia's oil exports.
Risk to global energy supply grows
Experts say the growing security risks in the Strait of Hormuz and the Red Sea pose a significant threat to global energy supply. A large portion of the world's oil trade passes through these two critical sea routes. It is assessed that new attacks or developments that could disrupt shipments in the region may increase upward pressure on oil prices.
Prospects for diplomatic solution dim
As US forces continued their operations against Iran on their 12th day, the Washington and Tehran administrations kept expectations low for peace talks. Statements from the sides indicate that the prospects for a diplomatic solution in the short term are weak. Expectations strengthened in markets that geopolitical risks will remain high.
