FX.co ★ Oil Climbs as Supply Risks Intensify

Crude oil climbed to nearly $88 a barrel on Thursday, its highest level in six weeks, after Iran-backed Houthi militants attacked two Saudi oil tankers in the Red Sea, heightening concerns over broader supply disruptions along critical shipping lanes. The group said it struck the vessels with missiles and drones for violating its blockade, while UK Maritime Trade Operations reported that a ship caught fire after being hit southwest of Saudi Arabia’s Red Sea coast. These were the first reported attacks on tankers in the Red Sea, opening a new front in the conflict even as shipping through the Strait of Hormuz remains at risk. At the same time, US forces carried out a 12th consecutive day of strikes on Iran aimed at reducing threats to commercial shipping, and Tehran retaliated with an attack on Kuwait. Both sides continued to downplay the likelihood of peace talks, while President Trump threatened additional strikes on Iranian infrastructure.