Oil prices jump more than 6%, Brent crude tops $107

Oil prices jumped more than 6 per cent on Thursday, with Brent crude rising above $107 a barrel amid growing concerns over disruptions to oil supplies as attacks on ships and oil tankers increase in the Middle East.

Brent crude futures, the global benchmark, rose about 6.3 per cent to $107.63 a barrel by 18:30 GMT.

The rise comes as markets grow increasingly concerned about oil supplies through the Strait of Hormuz amid escalating confrontation between the United States and Iran and attacks on tankers and ships in the region.

Earlier on Thursday, the Houthis reached the strategic port of Mokha near the Bab el-Mandeb Strait, adding to concerns over shipping through one of the Red Sea’s main routes for energy and trade.

READ: Iran says much of oil, gas refining capacity damaged in US-Israeli attacks rebuilt

The US military targeted five Iranian oil tankers on Wednesday after Tehran launched ballistic missiles towards a US Navy warship.

Iran has also warned crews of ships near Kuwaiti and Bahraini ports to remain off their vessels, heightening concerns over shipping security and oil shipments in the region.

Market participants are closely monitoring developments in the Strait of Hormuz, through which a large share of the world’s crude oil and petroleum products is transported.

READ: US missile hits Iranian oil tanker near Kharg Island: Report