Oil Prices Rise for a Fifth Straight Day

Oil prices continued their upward climb for the fifth consecutive trading day as growing geopolitical tensions in the Middle East raised fresh concerns about global energy supplies. With threats to two of the world's most important shipping routes, traders are increasingly worried that any prolonged disruption could tighten oil markets and push fuel prices even higher.

Brent crude, the international benchmark for oil prices, climbed 2.6% to US$96.49 per barrel, its highest level in more than six weeks. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose 1.8% to US$88.42 per barrel, extending gains after a strong rally in the previous trading session.

The latest surge comes as military tensions between the United States and Iran continue to escalate, while attacks in the Red Sea have added another layer of uncertainty for global shipping.

Strait of Hormuz Back in the Spotlight

One of the biggest concerns for energy markets is the Strait of Hormuz, one of the world's busiest oil transit routes. Roughly one-fifth of the world's oil supply passes through this narrow waterway every day, making it one of the most strategically important chokepoints in global trade.

According to Iran's Revolutionary Guards, an oil tanker caught fire after an explosion while navigating what they described as a mined route near the southern part of the Strait of Hormuz. They also claimed that two other vessels turned back after the incident.

Iran further declared that the strait is now under its control and warned that no tanker would be allowed to enter or leave without coordination while U.S. military operations continue in the region.

Although independent verification remains difficult, the statements alone were enough to unsettle global markets. Any disruption to traffic through the Strait of Hormuz could significantly reduce global oil supplies and immediately impact prices worldwide.

New Pressure from the Red Sea

At the same time, shipping routes in the Red Sea are also facing increasing risks.

Yemen's Houthi movement has expanded its attacks by targeting vessels carrying Saudi oil through the Bab el-Mandeb Strait, another vital maritime route connecting the Red Sea to the Gulf of Aden.

The Houthis claimed responsibility for attacks on two Saudi oil tankers and said they had warned several ships against travelling to Saudi ports. According to the group, around ten vessels turned back after receiving their warnings.

One vessel reportedly struck was the Saudi-flagged tanker Encelia, although Reuters said it could not independently verify the claim.

If these attacks continue, they could create serious disruptions to one of the key alternative shipping routes used by Gulf oil exporters.

Double Threat Raises Global Concerns

Energy analysts say what makes the current situation particularly worrying is that two critical maritime chokepoints are now facing simultaneous security threats.

The Strait of Hormuz handles enormous volumes of crude oil exports from Gulf producers, while the Bab el-Mandeb Strait serves as an important passage linking Europe, Asia, and the Middle East.

Disruptions in either location would be significant. Problems occurring in both at the same time could have much larger consequences for global energy markets.

Priyanka Sachdeva, senior market analyst at Phillip Nova, noted that geopolitical risk premiums have returned to oil markets. However, she added that for prices to continue rising sharply, investors would need clearer evidence of sustained shipping disruptions or major supply outages.

Similarly, Saul Kavonic, head of energy research at MST Marquee, warned that interruptions in the Red Sea alone could affect as much as five million barrels of oil per day, especially since the route serves as an important alternative for shipments avoiding the Strait of Hormuz.

Military Conflict Continues

The latest market anxiety also follows another night of military operations between the United States and Iran.

The U.S. military confirmed it had completed its twelfth consecutive night of strikes on Iranian targets. The campaign comes after President Donald Trump warned that the United States would retaliate against every Iranian attack on ships transiting the Strait of Hormuz.

According to Trump, the U.S. would target Iranian infrastructure, including bridges and power facilities, whenever Iran attacked commercial shipping.

The continued exchange of military strikes has increased fears that the conflict could escalate further, potentially affecting more oil production facilities or disrupting shipping routes across the Gulf.

Why Higher Oil Prices Matter

Whenever oil prices rise sharply, the effects are often felt well beyond energy companies.

Higher crude prices generally lead to increased fuel costs, which can eventually raise transportation expenses, manufacturing costs, and the prices consumers pay for goods and services. Airlines, logistics firms, shipping companies, and manufacturers are particularly vulnerable to sustained increases in energy prices.

Countries that rely heavily on imported oil may also face larger import bills, putting additional pressure on government budgets and inflation.

For Malaysia, while higher global oil prices can benefit oil and gas producers such as Petronas and companies within the energy sector, consumers could eventually experience higher fuel-related costs if elevated prices persist for an extended period.

What Markets Will Be Watching

Investors will now closely monitor developments in both the Strait of Hormuz and the Red Sea over the coming days.

If shipping continues without major interruptions, oil prices could stabilize after their recent gains. However, any confirmed closure of shipping lanes, additional attacks on tankers, or broader military escalation could quickly send prices even higher.

For now, global energy markets remain on edge as geopolitical tensions continue to overshadow supply fundamentals. With two of the world's most important oil transit routes under pressure simultaneously, uncertainty is likely to remain a key driver of oil prices in the weeks ahead.