Oil at 6-week high as war intensifies

Brent crude tops $95 a barrel as Iran-backed Houthis target Red Sea shipping

Iran-backed Houthi rebels in Yemen have threatened Saudi tankers attempting to transport oil through the Bab el-Mandeb ​Strait. (Photo: Reuters)

Oil prices rose to their highest in almost six weeks on Wednesday, with Brent crude surpassing $95 a barrel, on mounting concerns about disruptions to Middle Eastern supply routes because of escalating hostilities between the US and Iran ​and threats to shipping by ⁠the Iran-backed Houthi militia in Yemen.Brent crude futures were up $2.23 at $93.24 a barrel on Wednesday afternoon, after hitting a session high of $95.47. US West Texas Intermediate crude climbed $2.18 to $86.18.

Both benchmarks touched their highest levels since June 11. The Brent ‌crude three-month timespread, meanwhile, expanded to $10.89 a barrel, its widest since May 22, deepening backwardation on mounting supply risks.

Backwardation is where prompt crude trades at prices above later-dated barrels, typically signalling tighter near-term supply.