CRUDE oil prices surged on Wednesday as fatal strikes on cargo vessels in the Red Sea and the Gulf of Oman injected fresh volatility into global energy markets, undermining optimism surrounding diplomatic talks to unblock the Strait of Hormuz.
Brent crude futures climbed by approximately 1.24 per cent to reach US$90 a barrel, whilst US West Texas Intermediate crude futures advanced 1.3 per cent to US$84.30 a barrel.
CNBC reported that the market disruption follows a sharp escalation in maritime violence after Iran-backed Houthi rebels killed six people in a strike on a merchant vessel in the Bab el-Mandeb Strait on Tuesday. The incident represents the first recorded fatalities from attacks on Red Sea shipping routes in over a year.
In a separate development hours later, American forces confirmed they had fired missiles at a container vessel that allegedly attempted to breach Washington's blockade of Iranian ports situated in the Gulf of Oman.
The twin incidents highlight the compounding friction inflicted by the nearly six-month-old regional conflict on crucial global maritime corridors, tempering tentative diplomatic attempts to restore transit through the Strait of Hormuz.
Interactive Brokers senior economist José Torres observed that anxieties regarding Middle Eastern supply disruption remained dominant, despite indications that Washington and Tehran may be moving towards a compromise over the Strait of Hormuz.
Although Pakistani officials expressed confidence that an accord could be struck between the US and Iran, Mr Torres noted that financial markets demanded concrete results before sentiment would shift.
"Investors have been awaiting a deal for a few weeks, and tangible progress is likely required for yields to fall significantly and stocks to rally further at this juncture," he stated in a market note late on Tuesday.
He added that the modest rise in crude prices serves as clear evidence that supply security concerns triggered by the ongoing conflict have far from dissipated. - August 12, 2026
