As the United States expands its military strikes against Iranian targets and Iran launches attacks on neighboring Gulf countries, crude oil futures have recorded double-digit gains this week. Another factor intensifying concerns over rising tensions is the possibility of the Houthi forces in Yemen taking action to block Red Sea shipping lanes; meanwhile, Saudi Arabia has continued to reroute crude oil exports through the Red Sea in the event of a closure of the Strait of Hormuz. Barclays analy

As the United States expands military strikes against Iranian targets and Iran launches attacks on neighboring Gulf countries, crude oil futures have recorded double-digit gains this week. Another factor intensifying concerns over escalating tensions is the possibility of Yemen’s Houthi forces taking action to block Red Sea shipping; with the Strait of Hormuz closed, Saudi Arabia has been rerouting crude exports through the Red Sea. Barclays analyst Amarpreet Singh said in a report: “With inventories at their lowest levels in recent years and most strategic petroleum reserve releases having ended, renewed tensions surrounding this ‘red line’ in the strait pose significant upside risk to energy prices. As things stand, we believe the oil market remains too complacent about the potential impact on inventories.”