Brent Falls More than 10% as Trump Delays Iran Strikes

Brent crude oil surged 4% to around $97.9 a barrel on Thursday, the highest level since June 3, after fresh attacks on oil tankers near Saudi Arabia and renewed US threats against Iran heightened fears of supply disruptions. The UK Maritime Trade Operations agency reported that a tanker caught fire after being struck about 70 nautical miles southwest of Al Shuqaiq, with Yemen's Houthi rebels claiming responsibility, saying they had targeted two Saudi tankers with drones and missiles for violating their maritime blockade. The incident came hours after President Donald Trump warned that the US would strike an Iranian bridge or power plant every time Tehran attacked a vessel in the Strait of Hormuz, signaling a further escalation following the collapse of the US-Iran ceasefire. Iran responded by warning it would retaliate against US-linked infrastructure and energy assets across the region if Washington followed through on its threats.

Brent crude oil climbed to a fresh six-week high above $95 per barrel on Thursday, extending gains for a fifth straight session as escalating Middle East tensions heightened fears of deeper supply disruptions. President Donald Trump warned the US would strike Iranian infrastructure if Tehran attacked ships transiting the Strait of Hormuz, while Iran threatened retaliation against US-linked energy assets across the region. Meanwhile, Iran-backed Houthi militants attacked two Saudi oil tankers in the Red Sea with missiles and drones, marking the first direct strikes on tankers in the waterway and raising concerns over a key alternative export route for Saudi crude. The escalation opened a new front in the conflict as risks to shipping through both the Red Sea and Strait of Hormuz mounted. US forces also carried out a 12th consecutive day of strikes on Iranian targets, while both Washington and Tehran continued to downplay the prospects for peace talks.

Brent oil futures rose up to a six-week high of $94.4 on Wednesday before easing to $94 as markets assessed the threat that a blockade of Middle Eastern oil will have on global supply. Strikes between the US and Iran continued to halt oil and fuel exports from the GCC. US Secretary of State Rubio accused Iran of failing to honor previous commitments and emphasized that any future agreement must guarantee freedom of navigation through the Strait of Hormuz and prevent Iran from developing nuclear weapons or supporting militant groups. Also, threats from Yemen’s Houthi rebels against shipping routes in the Red Sea increased fears of further disruptions to international oil trade. On top of that, attacks on the Caspian Pipeline Consortium terminal in the Black Sea added pressure on global energy markets. Still, data from the EIA showed that crude oil stocks unexpectedly rose by 1.4 million barrels last week, contrasting with expectations of a draw.