Oil Prices Reach 5-Month High Due to Tensions in the Middle East

Following rising geopolitical tensions in the Middle East, claims by the Houthis in Yemen of attacks targeting Saudi Arabia, and threats regarding the Strait of Hormuz, oil prices traded at $111, reaching their highest level since May.

The claim by the Iran-backed Houthis in Yemen that they carried out attacks over the last 48 hours on airports in Saudi Arabia and facilities belonging to Saudi Aramco has heightened supply concerns in the markets. According to reports by Iran's official news agency IRNA, Iran's First Vice President Mohammad Reza Aref stated in a statement on Monday that, following attacks on tankers in the Strait of Hormuz, they have no other option than to establish control over this passage point in order to protect the country's security.

Concerns that the US and Israel might restart military operations against Iran are also supporting high fuel prices. US Energy Secretary Chris Wright stated in an interview with Fox News on Monday that energy flow has dropped to approximately 80 percent of pre-war levels.