London: Oil prices surged to $100 a barrel for the first time since July, following a series of military engagements involving the US, Iran, and Yemen's Houthi rebels in the Gulf region. The escalation in hostilities has reignited fears of potential disruptions to oil supplies, driving up global oil prices.
According to BBC, the spike in oil prices came after the US launched strikes on five Iranian tankers in retaliation for Iran's targeting of a US warship, while Iran's Revolutionary Guards responded by attacking eight tankers and two warships, as well as a US base in Jordan. The Revolutionary Guards also announced plans to establish a "prohibited zone" for shipping that extends beyond the Strait of Hormuz into the Arabian Sea.
The Iran-backed Houthis contributed to the tension by launching drone and missile attacks on oil facilities in Saudi Arabia, prompting dozens of retaliatory strikes by Saudi forces in Yemen. The price of Brent crude, the global benchmark, reached its highest level since late July, fueled by these developments and the effective closure of the Strait of Hormuz, a critical passage for the world's oil and liquefied natural gas shipments.
The conflicts have led to a sharp increase in petrol prices worldwide. The US Central Command (Centcom) confirmed its strikes against Iranian oil tankers linked to Iran's Islamic Revolution Guard Corps (IRGC) in the Gulf of Oman and near Kharg Island, instructing crews to abandon ship before the attacks. This action followed Iran's launch of ballistic missiles at a US warship, which successfully evaded the missiles.
In response, Iran's IRGC launched missiles at US facilities in Jordan, with no casualties reported. The IRGC also claimed attacks on US Navy destroyers and oil tankers in the Strait of Hormuz, though Centcom refuted the claim. The UK Maritime Trade Operations agency reported several merchant vessels in the region being attacked, further illustrating the heightened risks to commercial shipping.
Iraqi authorities reported extinguishing a fire on a Panama-flagged tanker hit by a drone in the Gulf. Meanwhile, the IRGC announced its intention to enforce a new "prohibited zone" in the Sea of Oman and Arabian Sea, warning vessels entering without coordination would face sanctions.
US Secretary of State Marco Rubio affirmed the US's stance on retaliating against Iranian aggression, emphasizing that Iran's attempts to hit US naval ships would result in the loss of their tankers. The US also addressed claims of an uncrewed submarine seizure by Iran, noting a malfunctioned underwater drone was being used to survey regional waters.
Simultaneously, the conflict between Saudi Arabia and the Houthis intensified, with the latter accusing Saudi Arabia of bombing a prison and launching attacks on Saudi cities, resulting in civilian injuries and temporary halts in oil facility operations. The Houthis reported further airstrikes across Yemeni territories, with no immediate response from the Saudi military.
The ongoing confrontations have reportedly resulted in over 500 deaths and the displacement of nearly 20,000 people, highlighting the severe humanitarian impact alongside the economic implications of rising oil prices.