Oil prices rose around 2% on Friday as the US and Iran intensified mutual attacks in the Persian Gulf region, but the Strait of Hormuz may not be the only chokepoint at risk. Tehran is now threatening to close another vital maritime route – the Bab el-Mandab strait linking the Red Sea to the Indian Ocean.
Brent crude futures gained $1.53, or 1.82%, to $85.76 per barrel by 10:00 GMT, while US West Texas Intermediate (WTI) rose $1.69, or 2.14%, to $80.64. According to Reuters, the breakdown of the ceasefire between the US and Iran caused a drop in oil exports through the Strait of Hormuz.
A new front in the Red Sea
Iran is pressuring the Houthi movement to close the Red Sea shipping lane if the US attacks Iranian energy infrastructure. Transit through the Red Sea has increased significantly since the start of the war with Iran, largely due to the diversion of Saudi oil exports away from the Strait of Hormuz.
– If the Bab el-Mandab strait is blocked as a result of further escalation, the price of oil is likely to rise even further – Commerzbank analysts wrote.
Wider regional consequences
On Friday, Iran announced new attacks on US facilities in the Middle East, including its first direct attack in Syria, after the sixth consecutive night of American strikes on Iranian military targets. US Central Command reported on Thursday that it had launched a fresh wave of attacks to further degrade Iranian military capabilities.
– Oil security remains a critical issue – said Fatih Birol, executive director of the International Energy Agency, during a meeting of the Council on Foreign Relations in Washington. – We should be worried, and I am worried, if the situation does not improve in the next few weeks.
Meanwhile, Qatar’s defense ministry said its armed forces foiled an Iranian missile attack early Friday, and the interior ministry reported that a child was injured by shrapnel during the interception. The attack also affected Kuwait, where a power plant and a water desalination station were hit.
Źródło: WNP.PL, Fot. EPA/ABEDIN TAHERKENAREH
