Physical oil prices have surged to a two-month peak as shipping disruptions across the Red Sea and the Persian Gulf intensify.
The price spike follows a sharp contraction in commercial traffic through the Bab el-Mandeb Strait, where only 11 cargo vessels were recorded passing through on Sunday—the lowest volume in several months.
The decline in transit activity comes in the wake of renewed Houthi attacks on Saudi Arabian oil infrastructure.
These strikes, combined with persistently low transit levels through the Strait of Hormuz, have tightened physical supply conditions and driven up spot premiums.
The dual chokepoint pressure is forcing shippers to reroute or delay voyages, adding friction to global energy logistics.
This development marks a significant escalation in the shipping risk narrative that has been simmering for months.