By Onu Okorie

Oil prices climbed about 2% on Tuesday to a five-week high, on worries that energy supply disruptions could worsen in the Middle East. This is following the more attacks between the U.S. and Iran and a threatened naval blockade of Saudi Arabia by Yemen’s Houthis.

Brent futures rose $2.12, or 2.4%, to $91.34 a barrel, while U.S. West Texas Intermediate crude rose $1.80, or 2.2%, to $85.03. Brent was on track for its highest close since June 10, and WTI for its highest since June 11. Brent remained in technically overbought territory for a seventh consecutive day.

Two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea on Tuesday after threats from Yemen’s Iran-aligned Houthis. The tankers, which had loaded Saudi crude bound for China and India earlier in the week, made U-turns and were headed toward the Suez, according to shipping data on LSEG. Sources said, however, that Saudi Arabia’s oil production was operating normally.

The developments came after U.S. forces bombed targets in the south and west of Iran overnight, while Tehran targeted U.S. sites in Bahrain, Kuwait and Jordan, and at least one tanker was hit in the Strait of Hormuz. The Houthis announced a naval blockade on Saudi Arabia on Monday, expanding the conflict and raising the threat to global energy supplies and trade beyond the Gulf.

An SEB Research note offered two possible readings of the escalation: “The optimist may see the latest American attacks as a last attempt to strengthen the negotiating position before a compromise is reached and the Strait of Hormuz is reopened.” But the note cautioned, “the risk is a more prolonged stalemate, with continued uncertain energy flows, higher oil prices and recurring attacks.”

Meanwhile, fuel oil markets in Asia extended gains on Tuesday amid worries about the Houthi naval blockade threat against Saudi Arabia through the Red Sea’s southern gateway.