International oil prices surged by more than 6%, with the two major benchmark oil prices exceeding US$100 per barrel
Quick Look
- International oil prices surged more than 6% on Thursday, with Brent crude oil and U.S.
- West Texas Intermediate (WTI) crude oil futures both exceeding $100 a barrel, the largest one-day rise in two months.
- The Houthi armed forces in Yemen have taken control of the port of Mocha, exacerbating shipping risks in the Red Sea.
AI-generated summary
Why It Matters
Since the outbreak of the Iran conflict, shipping in the Middle East has been repeatedly attacked, and the Red Sea and the Persian Gulf have become key conflict areas. Against this backdrop, international oil prices continue to be driven by supply concerns.
International oil prices surged more than 6% on Thursday (10th), with both major benchmark oil prices exceeding US$100 per barrel. (AP)
[Financial Channel/Comprehensive Report] International oil prices surged more than 6% on Thursday (10th), with both major benchmark oil prices exceeding US$100 per barrel, as attacks on shipping saw the largest surge since the outbreak of the Iran war, making traders worried that already tight supply would be further disrupted.
Brent crude oil futures rose $6.42, or 6.34%, to close at $107.63 a barrel.
Please read on...
U.S. crude oil prices topped $100 a barrel for the first time since May, with New York West Texas Intermediate (WTI) crude futures rising $6.43, or 6.69%, to $102.48 a barrel.
Both benchmark oil prices hit their highest levels since May 19 and posted their strongest gains in nearly two months.
Yemeni rebels allied with Iran, the Houthis, seized control of Yemen's Mocha port on Thursday, posing a further threat to Red Sea shipping; at the same time, Persian Gulf shipping remains restricted by the Strait of Hormuz as attacks on oil tankers in the region have intensified in recent days.
Simon-Peter Massabni, director of business development at XS.com, said attacks from Yemen on Saudi energy facilities have brought new sources of risk to the market, expanding market concerns beyond Iran and the Strait of Hormuz.
The threat is no longer limited to a single chokepoint, Masabuni said, but now includes the possibility that disruption could spread along regional export routes, oil production facilities and other energy infrastructure.
U.S. President Donald Trump has warned that the United States could attack Iran's Pickaxe Mountain, near the badly damaged Natanz uranium enrichment facility, and said the war could continue beyond the November midterm elections.
Iran said it attacked 10 ships near the strait on Wednesday after the United States attacked five Iranian oil tankers. Iran's Islamic Revolutionary Guard Corps said it would escalate its response if it was attacked by any further attacks.
The latest analysis from S&P Global Energy shows: "With prospects for a clear resolution to the Iran conflict dimming, and Brent crude prices recently exceeding $100 a barrel for the first time since July, the crude oil market is now gradually entering a longer-lasting new normal, in which the risk of disruption is ongoing rather than episodic."
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What to Watch
AI outlook — possibilities, not facts
International oil prices will remain above US$100 per barrel in the short term
Likely · Within weeks
Yemen's Houthis will continue to launch attacks on Red Sea shipping
Likely · Within weeks
Open Questions
- Will Iran actually escalate in response to further U.S. attacks?
- After the Yemeni Houthi armed forces take control of the port of Mocha, to what extent will Red Sea shipping be affected?
- Will the United States really launch military operations against Iran's Natanz region?
- Will the international community step in to mediate to prevent further expansion of the conflict?
