Oil Prices Rise on Red Sea Tensions

Oil prices rose as Iran-backed Houthi attacks on two Saudi oil tankers in the Red Sea signaled a broader escalation in US-Iran tensions and a potential disruption to shipping routes. Brent traded near or above $97–$100 per barrel while U.S. WTI also climbed, with traders forecasting higher transport costs if the Houthis press a maritime blockade and reroute around the Cape of Good Hope. The Red Sea flare-up comes amid ongoing Red Sea–Hormuz tensions, renewed US strikes on Iran, and continued disruption of energy infrastructure in the region, contributing to tightening global crude supplies. Analysts warn that prolonged blockade-style actions could sustain elevated prices and complicate inflation and policy decisions worldwide. Media reports indicate growing fear of extended supply disruptions as vessels divert or face delays through alternative routes. The situation reflects a broader pattern of Middle East instability affecting oil markets, geopolitical risk premiums, and downstream sectors.