Brent crude rose by 3% to reach $112 a barrel on Thursday, marking a five-month high for the commodity. This price level represents the first time the crude oil reached $112 since 18 May.
The surge follows a series of attacks by Yemeni Houthis on Wednesday, which targeted several locations across Saudi Arabia. Two people died and eight others sustained injuries during an incident at a civilian airport in Dammam.
A drone strike on a Saudi oilfield also resulted in two fatalities. The Iranian Islamic Revolutionary Guard Corps (IRGC) stated that four vessels involved in "illegal" oil transfers in the northern Gulf were struck and caught fire.
The IRGC further reported that three additional vessels collided with mines west of the strait of Hormuz. United States officials ordered some diplomats and their family members to vacate their missions in Saudi Arabia.
Washington also plans to withdraw family members from several other missions throughout the Middle East. Saudi Aramco told its staff to evacuate the headquarters in Dhahran and transition to remote work.
Energy prices have fluctuated significantly recently, peaking at $126 a barrel in April before falling below $100 in late May. Oil prices reached lows of $71 at the start of July.
Despite the volatility, oil exports from the Persian Gulf have climbed above prewar levels. Global equity markets reacted poorly to the news, with the Stoxx Europe 600 falling by 1%.
The UK’s FTSE 100 dropped by 0.7% while Japan’s Nikkei 225 index fell 2.7%. South Korean Kospi fell 3.5% and Hong Kong’s Hang Seng index shed 3% during the trading session.
