Brent Crude oil hovers near $95 as Rubio vows U.S. will ‘continue to protect shipping’ in Hormuz

On Wednesday, oil prices rose 4% higher after an eleventh consecutive round of US strikes against Iran, as Marco Rubio noted that the Strait of Hormuz remains a focal point of contention. 

According to the current reports, the international benchmark was trading up roughly 4% higher at $94.76.

Pump prices have soared once again today, continuing to rise past $4. Notably, the national average price per gallon rose 4 cents to $4.06 per gallon.

Oil prices have gained 30% and are now reportedly more than 55% since the start of this year. The significant sharp reversal reversed the drop in prices that came after the US and Iran ratified an agreement in mid-June.

According to Rubio, the US will continue efforts to safeguard commercial shipping. The UK Maritime Trade Organization has reported multiple attacks on vessels in the area.

“Iran is targeting global shipping in an international waterway and demanding to control which ships can go and which ones cannot,” Rubio added.

The surge in prices arises after Iranian-backed Houthi rebels in Yemen announced a naval blockade on Saudi Arabia- opening a new front in an expanding conflict.

Earlier, the Houthi group accused Saudi Arabia of carrying out an air attack on the Sanaa airport and launched missiles toward Saudi territory.

Yemen’s internationally recognized government took responsibility for the airport strike, adding that it damaged the runway to prevent an Iranian aircraft from landing

It is vital to note that much like the Hormuz Strait, the Bab el-Mandeb is a vital corridor for global oil supplies, and any disruption will ultimately pose serious threats and unsettle markets once again.

Marine Traffic analyst Dimitris Ampatzidis wrote, “The traffic count should also be read alongside growing evidence of route hesitation around vessels approaching the Gulf of Aden and Bab el-Mandeb,”

“The Houthis’ announced maritime blockade on Saudi Arabia has shippers nervous, with several tankers moving to avoid the Bab el-Mandeb Strait,” Dimitris continued.