• Oil prices soared to their highest levels in six weeks, with Brent crude exceeding $95 a barrel.
• The US military launched multiple strikes against Iran amid escalating tensions in the region.
• Iran-aligned Houthis have threatened oil tankers in strategic waterways, affecting global supply.
• The situation has prompted tankers to divert routes, fearing attacks in the Red Sea.
• US crude inventories increased by 2 million barrels as refinery runs eased.

Oil prices have sharply increased, with Brent crude surpassing $95 a barrel for the first time in nearly six weeks, driven by escalating military tensions between the United States and Iran, along with threats to maritime shipping routes by Iran-backed Houthis. On Wednesday, Brent crude futures jumped by $2.23 to $93.24 a barrel, while U.S. West Texas Intermediate crude climbed $2.18 to $86.18. This price movement is indicative of tightening near-term supply fears highlighted by the Brent crude three-month timespread, which has widened to $10.89 a barrel due to supply uncertainties, according to Bangkok Post and Reuters.

The US military has conducted its 12th consecutive night of strikes on Iranian targets, following threats from President Donald Trump to respond with devastating force if Iran attacks ships in crucial waterways like the Strait of Hormuz. In this heightened environment, Iran’s Revolutionary Guards have asserted control over the strait, alleging that it is "completely closed" to tanker traffic unless coordinated with Iran. This situation has further elevated the significance of the Strait of Hormuz, which, along with the Bab el-Mandeb Strait, remains vital for global oil shipments, according to Channel News Asia and Reuters.

In a related development, the Houthis have expanded their military operations by threatening vessels transporting Saudi oil in the Bab el-Mandeb Strait, and they announced a naval blockade aimed at disrupting Saudi maritime trade. Reports indicate that the Houthis have forced multiple ships to retreat from the region, raising alarms over their capability to impact global energy supplies. These tensions have caused tankers transporting Saudi oil to alter their routes, consequently influencing market dynamics and driving prices upwards, according to Bangkok Post and Channel News Asia.

On the supply side, the U.S. saw a rise in crude oil inventories by 2 million barrels last week, attributed to decreased refinery runs and increased imports, while expectations were set for a drawdown of 1.1 million barrels. This supply increase may add further pressure on already rising oil prices due to escalating geopolitical concerns in the Middle East, according to Reuters and Channel News Asia.