The oil price has climbed back above $100 a barrel for the first time in two months, as a fresh escalation of the Middle East conflict threatens to compound disruption to global oil supplies.
The benchmark oil price rose sharply on Thursday, after reaching $95 a barrel the day before amid fears that Yemen’s Houthi militia could strangle Saudi oil exports through the Red Sea while US-Iran tensions over oil flows through the strait of Hormuz intensify.
The Iranian-aligned Houthis said on Thursday they attacked two Saudi Arabian oil tankers, the Encelia and Layla, accusing the crews of violating a naval blockade imposed by the group in the Red Sea.
The Houthis said they targeted the tankers with a number of ballistic and cruise missiles as well as drones, leaving one of the vessels on fire.
Brent crude, the international benchmark for oil prices, surged past $100 a barrel in March, after the US and Israel launched airstrikes on Iran that all but stopped exports of fossil fuels from the Gulf via the strait of Hormuz.
The oil price peaked at $126 a barrel in April during the conflict, but fell back below $100 in late May and had fallen to as low as $71 at the start of July amid hopes of a ceasefire in the region.
The price has started to climb again after the memorandum of understanding between the US and Iran fell apart and fresh hostilities broke out in the Gulf.
More details soon …
