K-Points

Oil Prices Surge as US-Saudi Strikes in Iraq Kill 20 and Trump Renews Military Threats Against Iran

Oil prices surged by more than 6% following escalation in Middle East, as U.S. and Saudi airstrikes targeted multiple cities across Iraq. The strikes were aimed at the Iraqi Popular Mobilization Forces (PMF) and hit locations in Baghdad, Wasit, Nineveh, Basra, Kirkuk, Karbala, and Diyala. The attacks resulted in more than 20 fatalities and numerous injuries, raising fears of a broader regional conflict.

Simultaneously, renewed hostilities between the and Iran, along with fresh threats to commercial shipping through the Bab el-Mandeb Strait, pushed Brent crude oil toward the $90 per barrel mark. The sharp rise in oil prices was particularly fueled by comments from US President Donald Trump, who told Fox News that the United States would “hit Iran hard” in response to an attack on a U.S. base in Jordan.

Adding to the supply-side problem, the Houthi movement in Yemen has intensified pressure on Red Sea oil flows. After claiming responsibility for striking a Saudi tanker, the group issued a warning that it is considering new measures against commercial shipping transiting the Bab el-Mandeb. Among the potential actions, the Houthis considering at imposing transit fees on vessels using this strategic waterway, further global energy supply chains and driving investor uncertainty.