Crude oil prices fluctuated around the $80 mark on Thursday, hovering near one‑month highs as escalating tensions in the Middle East continued to underpin the market and dampen investor sentiment.
Reports indicated that the Iranian government had instructed Houthi forces to be prepared to close the Red Sea oil shipping route if US forces follow through on President Trump’s threat to strike Iranian infrastructure next week in the absence of a diplomatic breakthrough.
At the same time, the US stepped up its military campaign against Iran, reportedly targeting an oil tanker near Iran’s main export terminal for the first time since it reimposed a blockade on the country’s ports. In retaliation, Iran launched attacks on US bases in Kuwait and Jordan.
According to Reuters, tanker traffic through the Strait has fallen to a two‑month low as the conflict has intensified. Only seven vessels passed through the waterway on Wednesday, the first full day after the US reinstated its naval blockade on Iran, down from 13 a day earlier.
