Crude Oil Rises for 2nd Session

Crude oil extended gains to over $96 a barrel on Thursday, as escalating tensions in the Middle East heightened concerns over regional energy supplies. Yemen’s Houthi group said it had attacked Saudi military sites in Jazan, while Saudi Arabia reported intercepting missiles launched toward the Red Sea port of Yanbu. Traders are closely monitoring Saudi crude shipments amid the renewed attacks. Oil prices had already been rising after Iran threatened to broaden the conflict, further reducing optimism over a potential agreement to reopen the strategically important Strait of Hormuz. A senior Iranian military official said Tehran could expand the conflict to the Indian Ocean if the US or Israel launches another attack, according to Iran’s Fars news agency. The comments weakened hopes for a diplomatic resolution to the nearly seven-month conflict. Tehran has also maintained that it will restrict freedom of navigation through Hormuz while US sanctions and a blockade remain in place.

Crude Oil increased 4% to 95.845 USD/Bbl

Crude oil rose above $95 a barrel on Thursday, extending a 1.8% gain in the previous session, as heightened Middle East tensions clouded prospects for a diplomatic resolution to the conflict. Military adviser to Iran’s Supreme Leader Yahya Rahim Safavi warned that the conflict could expand from the Persian Gulf, Strait of Hormuz and Red Sea to the Indian Ocean if the US or Israel launches another attack. His remarks weakened optimism surrounding US-Iran discussions on the sidelines of the UN General Assembly. Iranian President Masoud Pezeshkian said Tehran was prepared to resume talks on ending the conflict but would not respond to threats. He also said Iran would restrict freedom of navigation through the Strait of Hormuz while US sanctions and a blockade remain in place. With Washington and Tehran still divided over key issues affecting energy transit, oil markets remained highly sensitive to further escalation.