Oil prices surged to a six-week high on Wednesday as escalating hostilities between the United States and Iran heightened concerns over global crude supplies. Brent crude futures rose 4.2% to $94.83 per barrel, while U.S. West Texas Intermediate crude climbed 4.33% to $87.99. The U.S. military conducted its 11th consecutive night of strikes against Iran, targeting military infrastructure and maritime capabilities. Meanwhile, Iran-backed Houthi militants in Yemen threatened to blockade Saudi oil shipments through the Bab el-Mandeb Strait, a critical route for global oil trade.
U.S. Secretary of State Marco Rubio accused Iran of not being serious about peace talks, stating that Washington remains committed to diplomacy but will take necessary actions to protect its interests. The Strait of Hormuz, another key shipping lane, remains a contentious issue, with Iran demanding control over the waterway. Analysts warn that disruptions in the Persian Gulf, Red Sea, and Black Sea could further tighten global oil supplies.
Tech stocks in Asia rebounded, with semiconductor-heavy markets like Seoul rising 5.4%, as investors reacted to AI-driven gains in the U.S. market. However, the focus remained on geopolitical risks, with analysts noting that the combined disruptions in key oil transit routes could push prices higher. The Caspian Pipeline Consortium terminal in Russia’s Black Sea coast also faced renewed attacks, adding to supply concerns.
Market analysts highlighted the dual-strait risk, with the Bab el-Mandeb Strait emerging as a new hotspot alongside the Strait of Hormuz. The Houthi threat has led tankers to divert, potentially pressuring Saudi exports and pushing prices upward. The longer the disruptions persist, the greater the likelihood of production cuts in Kazakhstan, where the CPC terminal handles 1.7 million barrels per day.