Oil prices hit $105 per barrel as Houthis seize key Red Sea port

Oil prices surged to a record high of $105 per barrel on Thursday after the Houthi rebels seized the key Red Sea port of Mokha, according to wire material. The Houthi group, backed by Iran, gained control of the Bab Al Mandeb strait, a crucial waterway responsible for about 10% of global oil supplies. Brent crude, the benchmark for two-thirds of the world's oil, jumped 4.12% to $105.4 a barrel, while West Texas Intermediate rose 4.29% to $100.20 a barrel.

Energy analyst Sasha Foss of CSC Commodities expressed concern over the potential impact on oil flows through the Red Sea, particularly as the Strait of Hormuz is already partially blocked. The Houthi rebels have previously imposed a maritime embargo against Saudi Arabia and have attacked ships in the channel, forcing Saudi Arabia to reroute its oil exports through the Mediterranean.

The conflict with Iran has further tightened supply fears in global markets, with the number of vessels passing through the Strait of Hormuz and the Bab Al Mandeb strait declining significantly.