Brent crude climbed back above $98 a barrel this week, its highest level since 24 July, after Houthi attacks wounded more than 70 people at Saudi energy facilities and Iran threatened a new Gulf exclusion zone. Shipping through the Strait of Hormuz has thinned sharply as Bank of England officials face questions on the war's inflationary impact.
Brent crude has risen back over $98 a barrel this week, its highest level since 24 July, as the conflict in the Middle East continues.
Saudi authorities said operations at some energy facilities were halted today after attacks by Yemen's Iran-aligned Houthis wounded more than 70 people.
Attacks Widen Across Saudi Territory
The Financial Times reported that Saudi Aramco's oil facilities in the city of Jizan, home to one of the country's largest refineries, had also come under attack. The Houthis separately said they plan to announce a major operation deep inside Saudi territory, which suggests an escalation beyond the current border skirmishes. The Saudi-led coalition in Yemen said the latest attacks injured at least 73 people and vowed a firm response.
Iran Threatens a New Exclusion Zone
Iran threatened to create a new restricted zone in the Gulf if the US presses on with its "economic warfare" against Tehran, a move that would presumably further undermine US efforts to reopen the Strait of Hormuz. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, said Tehran had recalibrated its posture toward US forces, warning: "Economic warfare will be met by a maritime exclusion zone across the Persian Gulf to the blockade perimeter." Shipping through the strait has already thinned: just seven commodity vessels crossed on Monday, down from eight on Sunday and roughly 130 a day before the war began.
Inflation Risk Complicates Central Bank Calculus
Higher oil prices add to inflation pressure across the economy, and Bank of England governor Andrew Bailey is due to face questions from UK lawmakers today on the central bank's decision to hold its Bank Rate at 3.75%, with the panel expected to probe the war's inflationary impact. Naeem Aslam, chief investment officer at Zaye Capital Markets, said oil has risen for a third consecutive session, and that higher energy costs could squeeze corporate margins while keeping interest rate policy restrictive.
Sources: Business | The Guardian, Crypto Briefing
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