Oil prices have climbed towards their highest levels in five months as attacks on tankers in and around the Strait of Hormuz mount and efforts to end the United States-Israel war on Iran are deadlocked.
Brent crude, the international benchmark, rose by more than $2 to $110.85 a barrel on Wednesday, close to a five-month peak.
A day earlier, Iran’s Islamic Revolutionary Guard Corps (IRGC) said two tankers were “set ablaze” after hitting mines at what it called an illegal crossing point in the strait.
Then, on Thursday, the IRGC said it hit seven more tankers although Washington dismissed the claim.
In a statement, the IRGC said four of the vessels were transferring oil when they were targeted and caught fire overnight.
In September, the Houthis, an armed group also known as Ansar Allah (Arabic for Supporters of God), seized territory in Yemen close to the Bab al-Mandeb strait, a critical chokepoint into and out of the Red Sea and a gateway to Egypt’s Suez Canal.
The escalation came as the world’s emergency oil stocks, already tapped heavily since the Iran war began on February 28, sit at their lowest levels in decades.
Al Jazeera put a question to analysts: If fighting resumes in full, the Strait of Hormuz is shut off completely and Houthi attacks choke off Bab al-Mandeb, how long could the world’s reserves last?Strategic oil reserves are stockpiles of crude oil and fuel held by governments or by companies on their behalf for use in a supply emergency.
On March 11, days after the start of the US-Israel war on Iran, the IEA’s 32 members agreed to make 400 million barrels available from emergency supplies, more than double the volume released after Russia’s full-scale invasion of Ukraine in 2022.