Oil Prices Surge Past $110 After Drone Strike Hits Saudi Aramco and Iranian Forces Hit 4 Tankers

Oil prices extended their gains above $110 per barrel on Thursday, due to the tensions in the Middle East that raised fresh concerns over potential supply disruptions. A Houthi drone strike struck near Saudi Aramco’s Shaybah oilfield, a key energy facility in the country’s eastern region, while Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy reportedly intercepted and struck four vessels that had been using unauthorized routes in the Strait of Hormuz while transferring oil in the Persian Gulf.  Yemeni forces, (Houthi movement), have intensified strikes on Saudi Arabia’s energy infrastructure, while Iran has tightened its grip on the strategically vital Strait of Hormuz, through which roughly one-fifth of the world’s oil passes.

In a statement, the IRGC claimed that the United States has been actively encouraging vessels to navigate through an unauthorized passage that has been mined. The IRGC warned, “The aggressor US military must know that, if this trend continues, the scope of confrontation will extend to the aggressor bases in the region. This is a serious warning.” The warning raises the possibility of a broader military confrontation beyond the Persian Gulf, potentially drawing in U.S. forces stationed across the Middle East.