- Brent crude rose 4.9% to $98.61 a barrel amid Red Sea and Strait tensions
- Geopolitical risks increased due to attacks on Saudi tankers by Houthi rebels
- Strait of Hormuz and Bab-el-Mandeb are vital routes for global oil shipments
Brent crude climbed to its highest level in months on Thursday, advancing 4.9% to $98.61 a barrel, as mounting tensions in the Red Sea and an unresolved standoff around the Strait of Hormuz and now Bab-el Mandeb revived concerns over potential disruptions to global oil supplies.
The move pushed Brent within striking distance of the $100-a-barrel mark, a level viewed by investors as both psychologically and economically significant.
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The rally comes as markets grapple with a widening security crisis spanning the Strait of Hormuz and the Bab-el-Mandeb Strait, two strategic maritime corridors that together carry a substantial share of global crude and refined fuel shipments.
Traders have sharply increased the geopolitical risk premium, betting that any prolonged disruption to these routes could tighten global oil supplies.
Fresh concerns emerged after Yemen's Houthi rebels claimed they had attacked two Saudi oil tankers in the Red Sea while the United States carried out its 12th consecutive night of strikes on Iran.
If confirmed, the attack would mark the first assault on Saudi shipping since the Iran-backed group announced a maritime embargo targeting the kingdom, raising the risk of a broader disruption to regional energy flows.
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The Bab-el-Mandeb Strait, linking the Red Sea with the Gulf of Aden, is a vital gateway for global commerce, handling roughly 12% of world trade and about 4.1 billion barrels of oil and petroleum products last year.
Meanwhile, the Strait of Hormuz remains the world's most important oil transit route, carrying nearly a quarter of global seaborne crude exports.
With Brent now approaching the psychologically significant $100 mark, analysts warn that a sustained rally could rekindle inflationary pressures, lift fuel costs for major importing economies and complicate the policy path for central banks already balancing slowing growth against persistent price risks.
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