Oil markets are repricing supply disruption risks as Houthi militants in Yemen intensify attacks on commercial vessels in the Red Sea.
The escalation threatens the Bab el-Mandeb strait, a vital artery for global energy trade located southeast of the already volatile Strait of Hormuz.
Brent crude prices climbed sharply in response to the renewed threat to shipping lanes.
The move reflects growing investor anxiety that the conflict is expanding beyond the Persian Gulf, potentially constraining supply from multiple directions simultaneously.
Energy traders are closely monitoring freight rates and insurance premiums for tankers transiting the region.
This development adds to a week of heightened volatility in the energy complex.