Brent reaches £112 a barrel amid attacks near key Gulf shipping routes
Oil prices rose sharply as attacks in Saudi Arabia and strikes on vessels near the Strait of Hormuz raised fears of renewed disruption to global crude supplies. Brent crude climbed 3% to $112 a barrel, its highest level since 18 May, amid concern that the conflict could widen.
The Houthis said to be aligned with Iran attacked targets in Saudi Arabia, killing four people and injuring eight, while Iran’s Revolutionary Guard said it hit four vessels in the northern Gulf and that three others struck mines. The US ordered some diplomats’ family members to leave Saudi Arabia, and Saudi Aramco told staff to evacuate its Dhahran headquarters and work remotely. Brent previously peaked at $126 in April, but Gulf oil exports have since risen above prewar levels, partly through pipelines; global share markets fell on Thursday.
In short
- Brent crude reached $112 a barrel, a five-month high.
- Vessel strikes and attacks in Saudi Arabia heightened supply fears.
- Gulf oil exports have recovered above prewar levels.
Explained simply
Brent crude is one of the main types of oil used to set prices around the world. The Strait of Hormuz is a narrow sea passage beside Iran and Oman, linking the Gulf to the open ocean; a large share of seaborne oil exports passes through it.
Saudi Arabia is a major oil producer, while Iran and the Houthi movement in Yemen are important parties in regional tensions. Attacks on ships or nearby countries can raise concerns that oil supplies will be delayed, though producers can sometimes use pipelines that avoid the strait.
Higher oil prices can increase costs for transport, heating and goods, affecting households and businesses far beyond the Gulf. The price also reflects expectations about future supply, so fears of disruption can move markets even before exports are reduced.
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Originally published by The Guardian as “Oil prices jump to five-month high as attacks threaten global supply”.