Oil Prices Hit Five-Month Highs Amid Iran-US Tensions
Global oil prices climbed to five-month highs as Iran reported tanker attacks and Houthi rebels struck Saudi infrastructure.
Brent crude oil prices reached approximately $113.50 per barrel, a five-month high, following a surge in instability across critical maritime chokepoints. The Islamic Revolutionary Guard Corps reported that several tankers in the Persian Gulf and the Strait of Hormuz were set ablaze or struck by mines.
President Donald Trump dismissed the Iranian reports as fake, claiming that Iran is attempting to inflate oil prices to influence the upcoming U.S. midterm elections. Simultaneously, Houthi rebels launched strikes against Saudi airports and Saudi Aramco offices, forcing the oil company to evacuate its headquarters in Dhahran. The Houthis have also seized territory near the Bab al-Mandeb strait.
Energy experts warn that global emergency oil reserves are at multidecade lows after the International Energy Agency coordinated a record release of 400 million barrels earlier this year. Analysts suggest that a total closure of the Strait of Hormuz and Bab al-Mandeb could leave the global economy with only one to two months of usable reserves, potentially pushing prices toward $150 per barrel.
