Brent crude oil prices climbed back above $100 a barrel on Thursday for the first time since May 22, marking their highest level since early June. The benchmark price has jumped more than 13% in a matter of days, with some fears that prices could surge to $120 a barrel as a fresh escalation of the Middle East conflict threatens global oil supplies.
The price increase follows claims by Yemen's Houthi militia that they struck two Saudi oil tankers in the Red Sea heading toward the Bab al-Mandab strait. These actions have stoked fears that the militia could strangle Saudi exports, while Iran reported that a third ship caught fire near the Strait of Hormuz.
The market rebound reflects growing concern over expanding warfare extending from the Persian Gulf to the Red Sea. Tensions have intensified as the United States launched a new round of strikes on Iran, leading to fears of severe new disruptions to oil flows through the strait of Hormuz.