Oil has climbed $100 for the first time since May as tensions in the Middle East escalate | Oil and Gas News

Oil prices rose for a fifth day after Yemen’s Houthis said they attacked Saudi Arabian oil tankers in the Red Sea.

The escalating conflict in the Middle East has pushed the price of Brent crude above $100 for the first time since May, the highest in almost two months.

Oil prices rose for a fifth day on Thursday after Yemen’s Houthis said they attacked Saudi Arabian oil tankers in the Red Sea amid escalating tensions between Iran and the United States.

The the latest attack by the Houthis The risk of further disrupting the flow of oil around the world is because the Red Sea is another water channel that oil companies use to transport oil from the Middle East as the Strait of Hormuz – an important channel for the transfer of energy to the world – is still effectively closed.

The prospect of higher oil prices also raises the possibility of higher commodity prices and higher interest rates, adding to weak sentiment, analysts said.

“Investors are worried … while new concerns are starting to fade,” said Susannah Streeter, senior investment strategist at the Wealth Club.

“With the Strait of Hormuz and the Red Sea now under great pressure, the markets are looking at how the conflict could disrupt the main energy channels, (and) maintain oil prices,” he added.

In the middle of the conflict between Iran and the US, Yemen’s Houthis have opened a new way in the war by targeting Saudi oil tankers in the Bab al-Mandeb river after warning of a naval blockade on shipments from Saudi Arabia.

The Houthis attacked two oil tankers in Saudi Arabia in a military operation, a Yemeni group said on Thursday, while Saudi media later confirmed that one of the two vessels caught fire after a naval attack in the Red Sea.

US President Donald Trump has threatened “massive military punishment” against the Houthis if they continue to attack ships.

The cease-fire between Iran and the US that was agreed in mid-June has ended, with fighting erupting again on the crucial Strait of Hormuz.

The U.S. military launched a new strike on Iran’s military for the 12th night in a row, as Iran continued to fire at U.S. military bases and missiles across the region on Thursday.

Iran’s Islamic Revolutionary Guard Corps (IRGC) says the Strait of Hormuz is under its control and is “completely closed”, warning that no vessel is allowed to enter or leave without Iran’s agreement.

Goldman Sachs said Brent could exceed $ 120 a barrel in the fourth quarter and almost $ 100 next year if the Strait of Hormuz were to collapse next year, conflicts over the Bab el-Mandeb Strait and the Suez Canal add to the problem.

Goldman expects oil prices to hold much of their recent gains through July and August as global supplies continue to shrink, supported by lower Middle East oil prices, demand for summer travel and a slowdown in the release of oil reserves.