Oil soars to $100 on fresh attacks

London: Oil prices surged to $100 a barrel on Thursday as Ansar Allah targeted Red Sea shipping and US President Donald Trump threatened to strike them in return.
International benchmark oil contract Brent North Sea soared more than six per cent to hit the symbolic $100 level, as the attacks potentially opened a new front in the Middle East war and Trump threatened the Ansar Allah with 'major military punishment'.
The official price of Oman crude oil for September delivery closed at $97.08 per barrel compared to Wednesday's closing price of $89.51.
Iran meanwhile vowed to continue striking the Gulf region so long as it remains under attack from US strikes.
Saudi Arabia had been using the Red Sea to export millions of barrels of oil that normally flowed through the Strait of Hormuz, so the closure of that shipping channel would remove more oil from the market.
There are 'no signs of a peace deal emerging as the US and Iran start to dig in and fears rise about choke points for certain fuel supplies', noted Neil Wilson, UK investor strategist at Saxo.
'Investors are in a wary mood... as fresh jitters of worry about the ongoing energy crunch hit sentiment,' said Susannah Streeter, chief investment strategist at Wealth Club.
'With both the Strait of Hormuz and the Red Sea now under increasing pressure, markets are bracing for the possibility that the conflict could disrupt key energy routes (and) keep oil prices elevated,' she added.
The prospect of higher oil prices also raises the prospect of higher inflation and interest-rate hikes, adding to weak sentiment, analysts said.
The Jordanian and Kuwaiti militaries reported intercepting fresh salvos of Iranian missiles and drones on Thursday, with Iran's army and Revolutionary Guards saying they had targeted US assets in the countries.
Jordan's army said it had shot down three Iranian missiles on Thursday morning, while a fourth fell in an uninhabited area. It also shot down six drones the night before.
The army said the 'operations resulted in no human casualties or material damage'.
Kuwait's military said overnight that it was also intercepting 'hostile drone threats', without specifying their target.
Iranian state media reported US strikes in the cities of Ramshir and Ahvaz and Bushehr province authorities also reported an attack.
Iran's Guards claimed retaliatory attacks in Kuwait on the Ali Al Salem base, Camp Udairi and a telecommunications tower, while the army said it targeted Camp Doha, Ali Al Salem and Camp Arifjan, according to separate statements carried by state TV.
Britain said on Thursday it had withdrawn remaining diplomatic staff from Iran as the conflict between Iran and the United States escalates.
'Due to the security situation, UK staff have been temporarily withdrawn from Iran. Our embassy continues to operate remotely,' the Foreign Office said on its website.
The Ansar Allah said they had carried out missile and drone strikes on two Saudi tankers in the Red Sea, the Encelia and the Layla, after declaring a blockade of Saudi ports.
British naval security monitor UKMTO said the master of a tanker reported being hit by an unknown projectile about 70 nautical miles southwest of Al Shuqaiq, causing a fire that the crew was fighting.
In Hormuz, the Revolutionary Guards said they stopped three oil tankers from transiting, as the US and Iran vie for control over the route through which around one fifth of the world's oil passed before the war. — Agencies