New York: Oil prices soared to $100 a barrel on Wednesday following escalating military actions between the United States and Iran in the Gulf region. The tensions were further heightened by attacks from Yemen’s Houthi rebels on Saudi Arabian oil facilities.
According to BBC, the US military reported strikes on five Iranian tankers in response to Iran's targeting of a US warship. Iran's Revolutionary Guards retaliated by attacking eight tankers, two warships, and a US base in Jordan. In addition to the conflict in the Gulf, the Guards announced plans to establish a new "prohibited zone" for shipping, extending beyond the Strait of Hormuz into the Arabian Sea.
The Iran-backed Houthis launched attacks on Saudi Arabian oil facilities, prompting dozens of Saudi airstrikes in Yemen. These conflicts drove Brent crude prices, the global benchmark, to their highest since late July, reaching $100.70 per barrel, up 2.83% from the previous day.
Before the US and Israel's conflict with Iran began in February, Brent crude was priced at approximately $70 per barrel. However, Iranian missile and drone attacks on commercial shipping and a US naval blockade of Iranian ports have led to the near-closure of the Strait of Hormuz, a critical route for 20% of the world's oil and LNG shipments.
The ongoing unrest has resulted in increased petrol prices globally. The US Central Command (Centcom) confirmed the destruction of four Iranian oil tankers in the Gulf of Oman and a fifth tanker near Kharg Island. Crews were instructed to abandon the ships before they were targeted.
Centcom stated these actions were a response to the IRGC's ballistic missile attacks on a US warship, which successfully evaded the missiles without any harm to American troops. The IRGC also claimed missile strikes on US facilities in Jordan, though Jordanian forces intercepted most missiles with no casualties reported.
The IRGC further alleged attacks on US Navy destroyers and oil tankers in the Strait of Hormuz, causing significant damage. However, Centcom dismissed claims of their warships being struck as false.
The UK Maritime Trade Operations agency received reports of merchant vessels in the Gulf suffering from military actions. In Iraq, authorities extinguished a fire on a Panama-flagged tanker hit by a drone.
IRGC spokesman Hossein Mohebi announced the proposed "prohibited zone" coordinates covering parts of the Sea of Oman and the Arabian Sea. Vessels entering without coordination could face sanctions.
US Secretary of State Marco Rubio addressed the situation, reiterating that Iran's attempts to target US naval ships would result in the loss of Iranian tankers.
The Houthis continue to exchange fire with Saudi Arabia, including a bombing of a prison in Hazm by Saudi forces, resulting in civilian casualties. Houthi drone and missile attacks on southern Saudi Arabia injured civilians and disrupted oil operations, intensifying regional tensions.
With more than 500 reported deaths and nearly 20,000 displacements, the situation remains volatile with no immediate comment from the Saudi military regarding ongoing hostilities.
