The last time crude oil prices reached $128 a barrel was in 2022. It hit an all-time high of $146 in 2008.
Analysts say that if the current situation is not resolved quickly, oil prices could reach $120 to $150 a barrel by October.
Houthi military spokesman Yahya Sarre claimed that they had successfully attacked Aramco facilities in the ports of Jizan and Yanbu in Saudi Arabia. A video circulating on social media showed a huge plume of smoke rising from the area of the 400,000-barrel capacity refinery in Jizan. Asia-based oil traders confirmed to Iran War
Fear of oil prices going out of control in the world market that the Jizan fuel depot had been damaged.
On the other hand, it has been claimed that two ballistic missiles targeting Saudi Arabia's main oil exporting port, Yanbu, were intercepted in the air. After the closure of the Strait of Hormuz, Yanbu port is Saudi Arabia's main alternative oil supply route.
In response to the Houthi attacks, the Saudi-led coalition and Yemeni government forces have launched counterattacks on Houthi military bases inside Yemen. Saudi forces have carried out multiple airstrikes on telecom infrastructure, Kamran Island and missile launch sites in Marib, Al-Jaf and the Red Sea port city of Hodeidah. Yemeni officials said that both sides are preparing for a new war, breaking a ceasefire that has been in place since 2022.
Houthi leader Abdul Malik al-Houthi warned that all of Saudi Arabia's oil installations would be targeted if it joins the war. Talks underway with Iran: Trump
The threat to the passage of about 7 million barrels of oil per day in the Red Sea has spread panic in global markets. Despite the complex situation, US President Donald Trump has said that no major military strikes on Iran will be carried out for the time being. He said that behind-the-scenes dialogue is underway between Washington and Tehran to end the conflict. After 13 consecutive days of missile exchanges, there were no reports of major attacks on major Iranian cities on Friday night. However, Trump warned that US forces are ready if necessary. On the other hand, Iranian Foreign Minister Abbas Araghchi said that Iran is not afraid of threats and will not bow to pressure. Insurance crisis and limitations of alternative routes:
According to US financial research firm JP Morgan, 7 million barrels of oil a day used to pass through the Red Sea as an alternative to the Persian Gulf. Now, Saudi Arabia's 5 million barrels of oil supply is under threat. Natasha Kaneva, head of global commodity strategy at JP Morgan, said that Saudi Arabia could try to send oil through the Suez Canal if it wanted. However, the problem in this case is that their large oil tankers would get stuck due to the depth. If they send it in small tankers, it would take eight weeks for the ships to reach their destination instead of four weeks. There is also no way to bypass the US and pass through the Strait of Hormuz by tolling Iran. Because it would not provide insurance benefits. Insurance companies have been charging high premiums for years. Now they are stopping insurance for ships that have paid tolls to Iran. Analysts have expressed concern that the global oil market will go out of control if this situation continues. Bahrain and Kuwait carried out airstrikes on Iran:
Bahrain and Kuwait carried out covert airstrikes inside Iran. The attacks were carried out earlier this month, the Wall Street Journal reported. A source familiar with the matter said that the attacks targeted Iranian drones and missile depots. The air forces of the two Gulf states are relatively small and are equipped with US and European fighter jets.