Brent crude and WTI benchmarks have rallied sharply, posting a 12% gain for the week as geopolitical risks in the Middle East escalate.
The surge follows reports that Iran is signaling it could leverage Houthi forces to disrupt shipping lanes, a development that has sent shockwaves through energy markets.
Shipping disruptions at key Middle East chokepoints have intensified, with vessels in the Red Sea executing unusual maneuvers and visible traffic through the Strait of Hormuz sinking sharply.
The deterioration in maritime security has forced carriers to reroute or delay shipments, adding immediate pressure to global supply chains.
The Strait of Hormuz remains the world’s most critical oil transit point, handling roughly one-fifth of global oil consumption.
Any sustained disruption there would have immediate and severe consequences for global energy prices, particularly for Asian importers who rely heavily on Gulf exports.