NEW YORK: Oil prices jumped six per cent on Thursday, with both major benchmarks trading above $100 a barrel as the biggest spike in attacks on shipping since the Iran war began fed traders’ worries about further disruptions to already tight supplies.
Brent crude futures hit their highest since mid-May, rising $5.87, or 5.8pc, to $107.08 a barrel by 1:20pm ET (1720 GMT). US oil topped $100 a barrel for the first time since May as West Texas Intermediate crude futures rose $5.57, or 5.8pc, to $101.62.
Both benchmarks have surged by more than 30pc from lows touched in early August as a permanent agreement between the US and Iran to cease attacks never materialised and fighting resumed.
Iran-aligned Houthis seized control of Yemen’s port of Mocha on Thursday, posing a further threat to Red Sea traffic, while Gulf traffic remains restricted through the Strait of Hormuz as tanker attacks in the region have intensified in recent days.
Attacks from Yemen on Saudi energy facilities introduce a fresh source of market risk, expanding concerns beyond Iran and Hormuz, said Simon-Peter Massabni, head of business development at XS.com.
