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EMEA Oil Update: Crude Gains as Middle East Conflict Threatens Oil Transit Routes

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EMEA crude futures edged higher in after-hours trading on Wednesday as escalating US-Iran hostilities stoked concerns over potential supply disruptions, while threats to shipping by Yemen's Houthis further boosted prices.

Brent crude futures climbed 2.7% to $93.44 per barrel, while Murban crude futures rose by 3.8% to $89.00/bbl.

Soojin Kim, research analyst at MUFG, said the rally was driven by continued US strikes on Iran, President Trump's renewed threats of broader military action and Houthi attacks on shipping in the Red Sea, alongside recent tanker attacks near the Strait of Hormuz.

On Wednesday, Trump vowed that the US would blow up an Iranian bridge or power plant, including those in the country's capital city of Tehran, every time Iran shoots at a vessel in the Hormuz.

"From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT," Trump said in a post on Truth Social post.

Fueling bullish sentiment, US Secretary of State Marco Rubio said on Wednesday that Iran was not serious about reaching a deal to end the fighting, while vowing to continue to protect shipping via the Strait.

Speaking at the ASEAN Foreign Ministers' meeting in the Philippines, Rubio said the US remains willing to negotiate an end to the Middle East conflict.

"The United States remains open and willing to engage in positive, constructive negotiations and talks so long as the commitments that are made are kept," Rubio said.

The US military also carried out its eleventh consecutive night of strikes against Iran, targeting Iranian military operations centers, maritime capabilities, aircraft hangars, drone storage facilities, and military logistics infrastructure.

Meanwhile, the Houthis have opened a new front in the conflict by threatening to target vessels carrying Saudi oil in the Bab el-Mandeb Strait and announced a naval blockade of Saudi Arabia.

The Houthis have repeatedly threatened to close the Bab el-Mandeb Strait during the Middle East conflict. A wider conflict with the militant group could jeopardize Saudi Arabia's oil exports through its East-West Pipeline, which allows crude to bypass the Hormuz.

Commercial shipping activity across key Middle East waterways remains subdued, with 22 confirmed transits through the Hormuz and 73 through Bab el Mandeb, as operators continue to exercise caution amid heightened regional security risks.

"Confirmed maritime attacks continue around the Strait of Hormuz, reinforcing concerns that uncertainty across both regional chokepoints could reshape routing decisions, increase freight costs and sustain higher geopolitical risk premiums for energy markets," Kpler said in post on X.

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Oil & Energy

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