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 through the Bab el-Mandeb strait, adding a new layer of supply risk to an already tense region.
The threat extends the scope of potential maritime disruptions beyond the Strait of Hormuz, which has already seen constrained flows due to ongoing US-Iran tensions.
With two of the world’s most critical oil chokepoints facing simultaneous pressure, traders are repricing the probability of a broader supply shock.
The move marks a significant reversal from recent sessions, where oil prices had retreated following the conclusion of US strikes on Iran.
Handelsavisen analysis notes that the dual-chokepoint risk creates a complex risk premium for energy markets.