Crude oil prices surged nearly 5% Wednesday, with Brent crude topping $95 a barrel, as escalating US-Iran tensions and growing threats to shipping raised fears that instability could spread across the Middle East’s two critical energy corridors, the Strait of Hormuz and Bab el-Mandab.
International benchmark Brent crude traded at $95.41 per barrel, up 4.83% from the previous close of $91.01. US benchmark West Texas Intermediate (WTI) traded at $88.56 per barrel, up around 5% from $84.34 in the previous session.
Jordan’s military said Wednesday that it had intercepted Iranian missiles and drones after explosions were heard in the southern city of Aqaba and warning sirens sounded over a possible attack.
A military source told the state-run Petra news agency that air defence systems detected six missiles launched from Iran toward Jordan and engaged them immediately after they entered the kingdom’s airspace.
The latest developments heightened concerns that geopolitical tensions in the Middle East could spread from the Strait of Hormuz to the Bab el-Mandeb Strait, raising the risk of further disruptions to global energy supplies and maritime shipping.
Iran-backed Yemeni Houthis imposed a blockade on Saudi Arabia amid rising tensions between Washington and Tehran, adding to concerns over shipping through the Bab el-Mandeb Strait following developments in the Strait of Hormuz.