Oil prices jumped sharply on Thursday as geopolitical risks across the Middle East intensified.
Brent crude climbed roughly 3.5% to 4%, trading above $102 a barrel, while U.S. West Texas Intermediate also moved sharply higher.
The rally followed a series of attacks and security incidents across key energy routes.
Yemen’s Iran-aligned Houthis have claimed fresh missile and drone attacks on Saudi targets, including airports and infrastructure, while shipping risks around the Strait of Hormuz have also increased.
Reuters reported that the past week saw the highest number of tanker attacks and harassment incidents in the Strait of Hormuz since the current U.S.-Iran conflict began.
At least 12 incidents were recorded, including projectile strikes, attempted attacks, drone activity and aggressive communications involving Iran’s Revolutionary Guards.
That distinction matters: the recent Houthi strikes are directly claimed by the group, while not every tanker incident has been independently attributed to the IRGC.
A tanker off Qatar was also hit by multiple projectiles, adding to fears that shipping risks are spreading beyond the core Hormuz chokepoint.
Oil prices were also supported by supply disruptions in the U.S. Gulf of Mexico, where Hurricane Isaias forced major producers including Shell and Chevron to shut offshore production.
U.S. crude and diesel inventories also fell more than expected, adding another bullish factor.
For markets, the combination is uncomfortable: higher oil, high bond yields and renewed geopolitical risk all point toward tighter financial conditions and stickier inflation.