Oil Heads for Weekly Surge as Middle East Supply Risks Mount

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessOil Heads for Weekly Surge as Middle East Supply Risks MountOil headed for a weekly surge after Houthi attacks on tankers in the Red Sea opened a new front in the Middle East conflict, while President Donald Trump threatened to extend US strikes on Iran.Author of the article:Kanoko Matsuyama and Gabriel Levin You can save this article by registering for free here. Or sign-in if you have an account.t{u8214[nrq0c9k{)h96[gwq_media_dl_1.png Nymex, Bloomberg(Bloomberg) — Oil headed for a weekly surge after Houthi attacks on tankers in the Red Sea opened a new front in the Middle East conflict, while President Donald Trump threatened to extend US strikes on Iran.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountWest Texas Intermediate was steady near $92 a barrel, up around 12% for the week. Brent closed above $100 for the first time since May. Trump posted that the US will inflict “major military punishment” on both Iran and the Houthis in the event of more strikes in shipping in the Red Sea. The president also told Axios he’s considering a “massive attack” on the Islamic Republic.Oil has rallied this month as hostilities between the US and Iran escalated in the Persian Gulf, snarling traffic through the Strait of Hormuz and hobbling flows of crude and liquefied natural gas. The first attacks on Saudi Arabian tankers by Iran-backed Houthi militants in the Red Sea have heightened concerns about deeper supply disruptions across the region.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“If Red Sea traffic is minimal, then we would forecast $120, kind of the inflection point for oil,” said Jay Hatfield, the chief executive officer at Infrastructure Capital Management LLC. “If there’s no transportation, then you need conservation. The way you get conservation is higher prices.”The Red Sea has become a crucial alternative export route for Saudi Arabia, allowing the kingdom to bypass Hormuz and continue shipping million of barrels a day to global customers. Some Asian buyers are now in talks with state run Saudi Aramco to potentially divert flows through the Suez Canal and around Africa after the Houthi attacks, according to traders.The market is also contending with attacks at the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast, which exports most of Kazakhstan’s oil. Global inventories have been depleted by months of conflict in the Middle East, raising the risk of a supply crunch and a broader economic shock.The US launched its 13th consecutive day of strikes on Iran, with both sides dismissing the prospect of a near-term return to negotiations. Tehran warned it would retaliate against energy facilities in the region if Trump follows through on his threat to destroy bridges or power plants should Iran attack vessels in the Strait of Hormuz.In the Red Sea, two Chinese tankers exited via the Bab el-Mandeb chokepoint on Thursday loaded with Saudi crude, despite the Houthi attacks. The Yemen-based militant group has warned all vessels against calling at the kingdom’s ports.Trump warned “that from this point forth, any and all damages done to Ships, Cargo, or anything related thereto, will be paid for by Iranian Money that the United States has in its possession, and controls.” He did not provide details on how payments would work in the Truth Social post on Thursday evening.“The path of least resistance continues to point higher,” said Chris Weston, head of research at Pepperstone Group Ltd., referring to oil prices. Brent is likely to climb to $110 a barrel unless “we see a meaningful shift toward two-way negotiations and a clear path” to a peace agreement, he added.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.