Brent Jumps Above $112 as Gulf Attacks Escalate
Brent crude jumped 3% to $112 a barrel, its highest level in five months, following attacks on Saudi facilities and tankers near the Strait of Hormuz that threatened supplies.
Oil prices jumped to their highest level in five months on Thursday following attacks targeting Saudi facilities and tankers in the Strait of Hormuz, raising fears of further disruptions to global crude supplies.
Brent crude, the international benchmark for oil prices, rose 3% to reach $112 a barrel for the first time since May 18, according to The Guardian newspaper. The newspaper reported that Houthi attacks on Saudi targets resulted in the deaths of two people and injured eight at a civilian airport in Dammam, while two people were killed in a drone attack on a Saudi oil field.
In a separate development, Iran's Islamic Revolutionary Guard Corps announced that four tankers participating in "illegal" oil transfers in the northern Gulf were attacked and caught fire, and three other tankers struck mines west of the Strait of Hormuz. Reuters reported that the United States ordered some diplomats and their family members to leave its missions in Saudi Arabia, and plans to withdraw family members from other missions in the Middle East.
The downturn extended to global markets, as the STOXX Europe 600 index fell 1%, Japan's Nikkei index dropped 2.7%, and South Korea's Kospi lost 3.5%, while American Airlines shares fell about 4% in pre-market trading after warning of rising fuel costs. The company said it expects a loss this year due to "historic pressure in fuel costs."
What do these terms mean?
Brent Crude: One of the most important oil pricing benchmarks in the world, extracted from the North Sea and used as a price reference for more than two-thirds of global crude oil.
STOXX Europe 600: An index tracking the performance of the 600 largest listed companies in European markets.
Nikkei Index: The main index of the Tokyo Stock Exchange, measuring the performance of the largest listed Japanese companies.
Strait of Hormuz: A narrow waterway between Iran and the Sultanate of Oman through which a large percentage of global oil exports pass.
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