Oil surges above $100 as Red Sea attacks stoke fears of wider Iran conflict

Oil prices have surged $100 a barrel for the first time since May in the wake of Houthis attacks on oil tankers in the Red Sea.

Brent crude spiked more than 5 percent on Thursday as the Middle East conflict is on the edge of “unimaginable spread of conflict.” Until Wednesday, oil was hovering around $90 per barrel but the strikes in the Red Sea have put the energy markets on edge.

West Texas Intermediate, the US benchmark, was up almost 5 percent to $90.98 per barrel.

Similarly, the gas prices also rose steadily over the past month. Average US gas prices surged to $4.09.

Fears of a global oil supply crunch have intensified following Houthi rebel attacks on Saudi oil tanks. Earlier, this week they announced a naval blockade on Saudi Arabia.

To bypass the Strait of Hormuz, the Kingdom used a vital alternative route for oil exports through Bab el-Mandab, the gateway in the Red Sea.

In response to attacks, Trump issued a stern warning. On Truth Social, he posted, “If they do this again, the U.S. will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, ​of course, the Houthis, themselves.”