Oil Prices Rise Above $105 as U.S.-Iran Tensions Threaten Shipping Routes

Brent crude, the international benchmark for oil prices, traded above $105 a barrel on Thursday as fears grew over broader regional fighting in the seven-month conflict between the United States and Iran, CBS News reported. The price increase unfolded alongside discussions at the United Nations General Assembly that yielded little visible progress toward an agreement.

Tensions flared after U.S. President Donald Trump threatened Iran with severe consequences, prompting a senior adviser to Iran's supreme leader to warn that Iranian forces and allied Houthis in Yemen could respond to new American attacks by targeting energy shipments in the Red Sea.

Maritime security in Gulf export corridors experienced immediate disruption. Oman's navy reported that a commercial vessel was struck in the Strait of Hormuz on Wednesday, resulting in the death of one crew member and the evacuation of more than 20 mariners.

Concurrently, Houthi forces seized the Yemeni coastal port of Mokha and key Red Sea islands near the Bab el-Mandeb Strait, announcing a blockade against Saudi shipping. The strategic passage typically carries approximately 12 percent of global maritime trade.