Oil prices rose sharply on Thursday as renewed violence in the Middle East reignited concerns about global energy supplies. The latest catalyst came after Yemen’s Houthi forces reportedly launched attacks in Saudi Arabia’s southern Najran province, while Iran continued signaling tougher restrictions on maritime traffic through the strategically important Strait of Hormuz.

Brent crude climbed above $83 per barrel, while U.S. West Texas Intermediate (WTI) traded around $78 per barrel, reversing much of the week’s earlier losses as geopolitical risks returned to the forefront of energy markets.

Houthi Attacks Raise Concerns Over Saudi Energy Infrastructure

According to reports, Houthi forces struck Saudi Arabia’s Najran province, resulting in civilian casualties. Saudi-led coalition officials also warned that the Houthis, alongside Iran-backed Iraqi groups, may be preparing coordinated attacks targeting Saudi civilian infrastructure, including energy facilities and ports.

The renewed violence follows reports that two Saudi oil tankers were attacked in the Red Sea during the past week, adding fresh concerns about the security of regional shipping routes that are critical to global oil exports.

The Houthis also claimed responsibility for attacks against Saudi military positions in Yemen, signaling that the conflict between the two sides may be intensifying once again.

Strait of Hormuz Remains at the Center of Market Focus

Oil markets were further supported by reports that Iran is considering new restrictions on vessels transiting the Strait of Hormuz.

According to draft proposals reported by Iranian media, U.S., Israeli, and other countries deemed hostile could be barred from using the waterway. Other commercial vessels could face transit fees ranging from 5% to 7% of cargo value, while violations could result in penalties equivalent to 20% of the cargo’s value.

The Strait of Hormuz remains one of the world’s most important energy chokepoints, carrying a substantial share of global crude oil and liquefied natural gas exports. Any disruption to shipping through the waterway has the potential to significantly tighten global energy supplies.

Diplomatic Optimism Gives Way to Renewed Uncertainty

The latest escalation marks a sharp reversal from earlier optimism that a diplomatic agreement between the United States and Iran could ease tensions.

Earlier this week, U.S. Treasury Secretary Scott Bessent suggested that negotiations were progressing and that energy shipments through the Strait of Hormuz could normalize quickly. Instead, military activity has intensified, raising doubts about the prospects for a near-term agreement.

Commodity analysts at ING noted that while recent diplomatic discussions showed encouraging signs, increasing distrust between Washington and Tehran continues to create significant downside risks for regional stability.

Energy Markets Brace for Continued Volatility

The combination of attacks on Saudi territory, threats against commercial shipping, and uncertainty surrounding negotiations has restored a geopolitical risk premium to crude oil prices.

Investors are closely monitoring developments involving Saudi energy infrastructure, Red Sea shipping lanes, and diplomatic negotiations over the Strait of Hormuz. Any further escalation could tighten global oil supplies, while meaningful progress toward a diplomatic resolution could quickly reverse recent price gains.

Closing Insights

Oil markets have shifted back into risk-off mode as renewed military activity across the Middle East overshadows earlier hopes for a diplomatic breakthrough. Rising tensions involving the Houthis, Saudi Arabia, and Iran have once again highlighted the vulnerability of critical global energy routes. Until there is greater clarity on the security of the Strait of Hormuz and broader regional stability, geopolitical developments are likely to remain a primary driver of crude oil prices.