Red Sea oil tanker first hit by missile attack! Alternative routes blocked, oil prices skyrocketed approaching the $95 mark.

Notice that, after Iran-backed Houthi armed groups claimed to have attacked two Saudi Arabian oil tankers in the Red Sea, the price of crude oil has soared significantly. This action has intensified the conflict in the Middle East and threatens deeper supply disruptions. WTI crude oil rose nearly 2%, trading price surpassing $88 per barrel; while in after-hours trading, Brent crude oil prices rapidly climbed to over $95 per barrel. The insurgent armed group stated that because these two ships violated the blockade in the Red Sea, the Houthis used missiles and drones to attack them, confirming the two oil tankers as the "Encelia" and "Layla." Just minutes before the Houthi armed group's statement, the UK Maritime Trade Operations Office (UKMTO) reported that a vessel was hit by flying objects southwest of Al Shuqaiq along the Saudi Red Sea coast, causing a fire onboard. UKMTO did not disclose the specific identity of the vessel. The first attack on Red Sea oil tankers has opened a new front in the Middle East conflict. Following escalated violence, the conflict has led to paralysis in shipping through the Strait of Hormuz. In recent days, Iran has frequently attacked vessels in this narrow waterway crucial for Persian Gulf exports. According to the US Central Command, the US military has launched airstrikes against Iran for the 12th consecutive day to further weaken its ability to threaten commercial shipping in the Strait of Hormuz. In response, Iran has targeted Kuwait, which has borne the brunt of its retaliation. Both the US and Iran have lowered prospects for negotiations, increasing the likelihood of a prolonged hostile state, which could lead to tightening oil market supplies. Trump has threatened to bomb bridges and power plants, reiterating the threat to strike "Pickaxe Mountain," a suspected site of an Iranian nuclear facility. Earlier this week, Houthi armed groups issued threats to block Saudi maritime shipping in the Red Sea. This waterway has become an increasingly important alternative export route for Saudi Arabia to circumvent the Strait of Hormuz, with the escalation of the situation posing a threat to the millions of barrels of crude oil supply flowing to global customers every day.