U.S. President Donald Trump has threatened to bomb power plants and bridges in Iran if it keeps attacking Red Sea shipping, and Tehran has vowed to hit U.S.-linked targets in return. With a second oil chokepoint now under fire, Brent crude closed at $94.07 a barrel.
Trump on Wednesday threatened to bomb bridges and power plants in Iran, including in the capital Tehran, if the Islamic Republic attacked shipping in the Red Sea — an action that experts say could constitute a war crime under international law. Iran responded by threatening to strike U.S.-linked infrastructure and energy facilities across the region if Washington carried out the threat.
The hardening rhetoric comes even as some reports point to regional mediators racing to calm the conflict.
Houthi rebels said they attacked shipping in the Red Sea, deploying missile and drone assets against ships in the Bab el-Mandeb strait, another crucial chokepoint in the oil market.
Since the closure of the Strait of Hormuz, Saudi Arabia has diverted millions of barrels of oil a day through a pipeline to an export terminal on the Red Sea, a relief valve for global markets during the conflict. A closure of Bab el-Mandeb would block in those barrels, worsening the disruption triggered by the tanker attacks in Hormuz.
Brent closed at $94.07 a barrel, a gain of more than 3% on Wednesday. U.S. West Texas Intermediate crude advanced about 3% to settle at $86.83.
Both benchmarks pushed higher again in Asia trading Thursday, with Brent up 1.67% and WTI futures rising 1.39%.
Source: CNBC
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