Brent crude is trading above the $96 per barrel mark on global exchanges against the backdrop of the ongoing standoff between the US and Iran and attempts by the Yemeni Houthis to block yet another key oil supply route – the Bab el-Mandeb Strait, located at the southern entrance to the Red Sea.
After oil shipments through the Strait of Hormuz became more difficult due to the latest escalation between Iran and the US, Saudi Arabia was able to reroute some of its traffic to the Red Sea and the Bab el-Mandeb Strait. However, this week, three oil tankers carrying Saudi oil destined for China and India changed course and headed for the Suez Canal instead of the Yemeni coast following a warning from the Houthis.
The rise in oil prices is linked to the ongoing conflict in the Middle East. Iran is attacking oil tankers in the Strait of Hormuz. The US states that, in response to the attacks on civilian vessels, it is carrying out strikes on Iran’s military infrastructure. Iran, in turn, is attempting to target US military installations in neighbouring countries.