Oil prices extended their gains on Thursday, with Brent crude climbing above $97 per barrel after Houthi militants claimed responsibility for attacks on two Saudi oil tankers in the Red Sea, heightening concerns over global energy supplies.
September Brent crude futures rose 3.6% to $97.45 per barrel, while West Texas Intermediate (WTI) futures gained 2.7% to $89.17 per barrel.
The latest advance lifted Brent to its strongest level since early June, reversing the decline that followed the temporary ceasefire between the United States and Iran.
Shipping risks return to the forefront
According to the Houthis, the Saudi tankers ENCELA and LAYLIA were targeted for allegedly violating a recently announced maritime blockade.
Although Saudi officials have not reported any damage, the attacks have reinforced concerns that the conflict is spreading to critical maritime trade routes used by the global energy industry.
Earlier warnings from the group about blocking Saudi-linked shipping through the Bab el-Mandeb Strait have intensified fears of prolonged disruption. Any sustained interruption could force vessels to take longer routes around southern Africa, raising freight costs and delaying deliveries.
Markets monitor Hormuz developments
Investors also remained focused on the Strait of Hormuz after another round of U.S. military strikes on Iran increased geopolitical uncertainty.
Iran’s Revolutionary Guards reported an explosion near a mined shipping lane south of the strait, adding that one tanker caught fire while two others changed course.
Iranian authorities reiterated that the Strait of Hormuz was “fully closed” and stated that commercial oil tankers would require prior coordination before entering the waterway.
With both Hormuz and Bab el-Mandeb handling a substantial share of global crude exports, traders continue to price in elevated geopolitical risk.
U.S. inventories rise unexpectedly
Fresh inventory figures from the U.S. Energy Information Administration showed commercial crude stockpiles increased by 2.0 million barrels to 411.7 million barrels during the week ended July 17.
Gasoline inventories rose by 0.8 million barrels, distillate stocks increased by 1.4 million barrels and total commercial petroleum inventories climbed by 11.6 million barrels.
The unexpected inventory build provided some balance to supply concerns, although geopolitical developments continued to dominate market sentiment.
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