Shafaq News
Oil prices rose more than 1.5% inAsian trade on Thursday to stand at their highest in more than six weeks, asYemen's Houthis targeted oil tankers in the Red Sea and the United Stateslaunched a new round of strikes on Iran.
Brent crude futures rose $2.2 or2.3%, to $96.27 by 0327 GMT, the highest since June 8, having settled up morethan $3 at $94.07 in the previous session, just shy of a six-week high.
U.S. West Texas Intermediate crudeclimbed $1.65, or 1.9%, to $88.48, after Wednesday's rise of 3%.
Iran's Revolutionary Guards said anoil tanker caught fire after an explosion while attempting to follow a routethey described as mined, south of the Strait of Hormuz, while two others hadturned back.
In a statement the Guards said thestrait was under their control and "completely closed" while U.S.actions continued in the region, warning that no tanker would be allowed toenter or leave without coordination with Iran.
Besides the renewed conflict overcontrol of the key waterway, the Iran-aligned Houthis have opened a new frontby threatening to target vessels carrying Saudi oil in the Bab el-Mandeb straitand unveiling a naval blockade of Saudi Arabia.
Oil prices are facing a rare riskfrom simultaneous disruptions at both the Bab el-Mandeb and the Strait ofHormuz, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
"Geopolitical premiums havereturned, but a sustained (price) rally will require evidence of prolongedshipping disruptions or meaningful supply outages."
The Houthis said they had carriedout a military operation targeting two Saudi oil tankers, and maritime securityreports said one of the vessels identified by the group, the Saudi-flaggedtanker Encelia, had been hit in the Red Sea.
The Houthis said they had forcedabout 10 ships to retreat and return after warning vessels against sailing toSaudi ports.
Reuters could not immediatelyverify this account.
The Houthis' naval blockade of SaudiArabia in the Red Sea threatens to disrupt global energy supplies beyond theGulf, while Iran's Revolutionary Guards' spokesperson also warned shippingcompanies that the Strait of Hormuz southern route is mined in a post on X.
The new threat to Red Sea passagecould interrupt up to 5 million barrels per day of oil supply, and the mainroute for Gulf oil that bypasses the Strait of Hormuz, said Saul Kavonic, thehead of energy research at MST Marquee.
The U.S. military said it completedits 12th consecutive night of attacks on Iran hours after President DonaldTrump vowed to destroy an Iranian bridge or power plant every time Iran shootsat a ship in the Strait of Hormuz, raising the stakes in the war with Iran.
(REUTERS)
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