Oil price pushes past $95 amid Houthi blockade threats and US strikes

Global oil prices have recently surged past $95 a barrel, with benchmark Brent crude exceeding this mark for the first time in six weeks. This significant increase is primarily driven by escalating geopolitical tensions and military actions across the Middle East.

The rise in prices is largely attributed to renewed U.S. military strikes against Iran, which have intensified in recent days, and a concurrent increase in threats and attacks from Houthi rebels. These Houthi actions specifically target shipping in crucial waterways such as the Red Sea and the Bab el-Mandeb Strait, creating concerns about the disruption of global oil supplies.

These developments are threatening vital maritime chokepoints, including the Strait of Hormuz, through which a substantial portion of the world's oil transits. Analysts are warning that if these disruptions persist, oil prices could climb even higher, potentially reaching $120 a barrel by the end of the year, with broader implications for global inflation and economic growth.