FX.co ★ Crude Oil Extends Gains

Crude oil extended its rally above $96 per barrel on Thursday, as intensifying Middle East tensions deepened worries over regional energy supplies. Yemen’s Houthi movement said it had struck Saudi military targets in Jazan, while Saudi authorities reported intercepting missiles fired toward the Red Sea port of Yanbu. The renewed attacks have prompted traders to closely scrutinize Saudi crude export flows.

Prices had already been climbing after Iran threatened to widen the conflict, further dimming prospects for a deal to reopen the strategically vital Strait of Hormuz. A senior Iranian military official, cited by Iran’s Fars news agency, warned that Tehran could extend the confrontation into the Indian Ocean if the US or Israel carries out another strike. The remarks further eroded hopes for a diplomatic resolution to the nearly seven-month-long crisis. Tehran has also reiterated that it will curtail freedom of navigation through Hormuz as long as US sanctions and the blockade remain in place.