• Oil prices have risen to their highest levels in six weeks amidst escalating US-Iran tensions.
• Brent crude hit $96 per barrel while WTI surpassed $88, driven by concerns over Middle Eastern supply disruptions.
• The Houthis announced a naval blockade of Saudi Arabia and targeted oil tankers in the Red Sea.
• The Strait of Hormuz is reportedly under Iranian control, causing fears of wider supply disruptions.

Oil prices soared to their highest levels in nearly six weeks, with Brent crude exceeding $96 a barrel, reflecting rising concerns regarding supply disruptions in the Middle East due to escalating hostilities between the U.S. and Iran. On the same day, U.S. West Texas Intermediate (WTI) crude rose past $88, attributed to the U.S. military's ongoing attacks on Iranian targets, which President Donald Trump vowed would result in retaliatory destruction of Iranian infrastructure if ships were attacked in the Strait of Hormuz. Such measures have significantly heightened tensions in the region, according to Bangkok Post and Reuters.

The U.S. military's twelfth consecutive night of strikes on Iran coincided with claims from Iranian authorities that the Strait of Hormuz was "completely closed" due to ongoing military operations. This closure concerns many in the energy sector, as the region is critical for global oil shipments. Iran's Revolutionary Guards asserted that no vessels could pass through without their coordination, which they implied was a real threat to maritime security. This heightened state of affairs has led oil futures to touch new highs as traders monitor supply situations closely, according to Reuters and India Times.

In addition to the risks posed by Iran, the Iran-aligned Houthi militia has also intensified their activities, announcing a naval blockade of Saudi Arabia and threatening vessels transporting Saudi oil through the Bab el-Mandeb Strait. Reports indicate that a Saudi-flagged oil tanker named Encelia was targeted, further complicating an already precarious situation. This has led to around ten vessels diverting away from Saudi ports upon receiving threats. Concerns over the security of these shipping routes and subsequent global energy supply disruptions have significantly contributed to the upward pressure on oil prices, as noted by Channel News Asia and India Times.