Global oil prices have climbed sharply as renewed tensions in the Middle East fuel concerns over energy supplies and maritime security.

The latest spike follows attacks on Saudi oil tankers in the Red Sea, escalating threats involving Iran, and a new U.S.-Saudi civilian nuclear energy agreement that has heightened uncertainty across international markets.

Brent crude, the global benchmark for oil prices, rose above $98 per barrel, reaching its highest level since June after Yemen’s Iran-backed Houthi movement claimed responsibility for attacking two Saudi-owned oil tankers transiting the Red Sea.

The group also announced what it described as a naval blockade targeting vessels linked to Saudi Arabia, raising fears of renewed disruptions along one of the world’s most critical shipping routes.

The growing crisis has been compounded by increasingly hostile rhetoric between Washington and Tehran.

U.S. President Donald Trump has warned that the United States could target key Iranian infrastructure if attacks on commercial shipping or U.S. interests in the region continue, further increasing concerns over the possibility of a broader regional conflict.

At the same time, the United States and Saudi Arabia announced a new agreement on civilian nuclear energy cooperation.

While both governments described the deal as focused on peaceful energy development and economic cooperation, analysts say it also reflects Washington’s efforts to deepen its strategic partnership with Riyadh amid rising geopolitical tensions across the Middle East.

Economists warn that continued attacks in the Red Sea and around the Bab al-Mandeb Strait could drive oil prices even higher, increasing transportation costs, fueling inflation, and placing additional pressure on the global economy.

The Red Sea and the Bab al-Mandeb are among the world’s most important maritime trade corridors, carrying millions of barrels of oil and a significant share of global commerce between Asia, Europe, and the Middle East.

Any prolonged disruption could have far-reaching consequences for international energy markets and global supply chains.

Global oil prices climbed by more than 3% after the US and Iran exchanged heavy military strikes, fueling fears of a wider regional conflict and disrupting shipping through the strategically vital Strait of Hormuz.

The price of Brent crude rose to around $76 per barrel (£56.88), reflecting growing concerns over the security of global energy supplies as tensions escalated. The increase came after shipping traffic through the Strait of Hormuz slowed significantly amid fears of further attacks.

The Strait of Hormuz, through which roughly 20% of the world’s seaborne oil supply passes, is one of the most critical maritime trade routes for global energy markets. Any disruption to shipping in the waterway is closely monitored by investors and energy traders due to its potential impact on fuel supplies and prices worldwide.

The latest escalation has heightened concerns over the stability of the Middle East, with governments and international organizations calling on both Washington and Tehran to exercise restraint and prevent the conflict from expanding further.

Analysts warn that prolonged hostilities or a sustained disruption to oil shipments through the Strait of Hormuz could trigger further increases in global energy prices, adding pressure to inflation and economic growth in countries heavily dependent on imported fuel.