Crude Oil Hits Four-Month High Amid Gulf Tensions

Brent crude traded at $107.86 per barrel on Wednesday. This represents the highest level since May. West Texas Intermediate stood at $102.28 per barrel. Both benchmarks posted their sharpest weekly gain since mid-July. The increase totals approximately 13% from the prior week. Market participants are repricing the duration and severity of the conflict. The prospect of a peaceful resolution has diminished significantly.

Supply Flows Remain Below Pre-War Levels

ING commodity analysts note that oil resilience reflects a market adjusting to prolonged hostilities. Significant volumes continue to move through the Strait of Hormuz. However, these flows remain well below pre-war levels. Warren Patterson and Ewa Manthey highlight the fragility of the current situation. The market is pricing in the mounting threat to regional supply. This dynamic supports higher price levels despite ongoing trade.

Houthi Control of Mokha Port Expands Threat

Yemeni Houthis have intensified attacks on Saudi energy infrastructure. They also target tanker traffic in the Red Sea. The group recently took control of the port city of Mokha. This move provides a direct presence on approaches to vital straits. The UN Special Envoy for Yemen confirmed this development to the Security Council. The advance along the Red Sea coast adds to existing risks. Mutual attacks on tankers by US and Iranian forces continue in the Persian Gulf.

Analysts Predict Potential Retest of March Highs

Tony Sycamore from IG stated that events are spiraling out of control. Iran shows willingness to stretch the conflict in width and duration. It is increasingly likely that WTI crude will retest the $119.48 high from early March. This projection assumes continued escalation in the region. The current price action reflects heightened geopolitical risk. Investors are monitoring military developments closely for further signals.