Oil Prices Hit Five-Month High as Gulf Attacks Threaten Supply

Oil prices climbed to a five-month high after attacks in the Gulf threatened global crude supply, with Iran's Islamic Revolutionary Guard Corps saying it struck four vessels in the northern Gulf and three more vessels hitting mines near the Strait of Hormuz. The incidents raised immediate concerns about the security of one of the world's most critical energy chokepoints, pushing crude benchmarks to their highest level in five months as traders priced in the risk of disruption to flows through the region.

The Strait of Hormuz is the passage through which a substantial share of global seaborne oil is transported, and any threat to shipping there tends to feed directly into crude prices. The reported mining near the strait added a further layer of risk, since mines can linger and complicate navigation even after immediate hostilities subside. The combination of direct attacks on vessels and the mining threat prompted a sharp repricing of supply risk across oil markets.

The move in crude came as global equities wobbled, with the oil price spike adding to broader market unease. For investors, the development puts energy security back at the centre of the macro outlook, with higher crude prices potentially feeding through to inflation and input costs across sectors. Shipping and insurance costs for Gulf transit are also likely to be in focus as operators assess the safety of routes through the region.

The key question for markets is whether the disruption proves temporary or escalates into a sustained threat to supply. With prices at a five-month high, the risk premium now embedded in crude reflects how seriously traders are treating the attacks near the Strait of Hormuz.