Oil prices jump as Hormuz, Red Sea crises deepen
Renewed strikes on shipping in the Gulf and the Red Sea have dealt a fresh double blow to global oil markets, with the price of crude oil once again passing $100 a barrel. DW examines what could push prices even higher.
On July 24, the price of Brent crude oil surpassed $100 a barrel, marking a nearly one-third increase from the previous month's low. However, it remains below the $126 peak seen in April. This surge is attributed to heightened tensions in the Red Sea, where Iran-backed Houthi rebels have attacked Saudi oil tankers. The Houthi threats have prompted the U.S. to carry out 12 night strikes against Iran, aiming to disrupt ship and air defenses in the Gulf region.
The Red Sea route, previously serving as a relief valve for Saudi and UAE oil exports, has now become a focal point for energy analysts concerned about potential disruptions. If the Red Sea is fully blocked, it could lead to a double blow to the global energy sector after the Hormuz crisis, with Bab el-Mandeb, a narrow strait at the Red Sea's southern end, being particularly vulnerable.
The oil market's increasing reliance on the Red Sea route underscores the significant impact any blockade would have on global oil supplies.
Written by urgent.news from DW Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
