Oil Prices Hit Six-Week Highs, Surge Past $96 As Renewed US-Iran Conflict Enters 12th Day

Global oil prices extended their gains in early Asian trading on Thursday as escalating tensions between the United States and Iran continued to fuel concerns over possible disruptions to crude supplies.

Both major benchmarks climbed to their highest levels in more than six weeks amid fears surrounding key energy shipping routes.

West Texas Intermediate (WTI) crude was trading 1.41% higher at $88.05 per barrel, while Brent crude gained 1.76% to reach $95.73 per barrel during early trade.

The latest surge followed another round of US military action against Iranian targets.

The United States launched its 12th consecutive wave of strikes on Iranian military infrastructure, while Iran-backed Yemen-based Houthi forces intensified threats against commercial shipping in the Red Sea.

According to the US Central Command (CENTCOM), American forces carried out fresh strikes under orders from President Donald Trump, targeting facilities linked to Iran’s military capabilities and efforts to threaten commercial vessels operating in regional waters.

Adding to market concerns, Iran’s Revolutionary Guards claimed that an oil tanker caught fire after attempting to pass through a mined shipping route near the southern Strait of Hormuz.

Iranian officials said the strategic waterway remained under their control and warned that vessels would require coordination with Tehran to transit the route.

The Strait of Hormuz is a critical global oil chokepoint through which a significant portion of worldwide crude shipments pass. Any disruption in the region could have a major impact on energy markets.

Meanwhile, Houthi militants expanded their maritime threats by targeting Saudi oil shipments passing through the Bab el-Mandeb Strait.

The group claimed responsibility for attacks on two Saudi tankers, while maritime security reports indicated that the Saudi-flagged vessel Encelia was hit in the Red Sea.

The renewed risks around both Hormuz and Bab el-Mandeb have heightened concerns of supply disruptions and increased volatility in global oil markets. Traders remain focused on geopolitical developments as diplomatic efforts show little progress.

A rise in US crude inventories provided limited downward pressure on prices. The Energy Information Administration reported that commercial crude stocks increased by 2 million barrels last week, against expectations of a decline.

However, geopolitical risks continue to dominate market sentiment. Without signs of a diplomatic breakthrough, analysts expect oil prices to remain volatile, with further upside risks in the near term.