Oil prices surged on Thursday, with Brent crude climbing toward the $100-per-barrel threshold, as fresh tanker attacks near Saudi Arabia and escalating US-Iran tensions intensified concerns regarding potential supply disruptions.

International benchmark Brent crude jumped more than 4.9% to around $98.7 per barrel as of 0925GMT, its highest level since late May.

The US benchmark West Texas Intermediate (WTI) also advanced to around $90 per barrel.

Prices extended their gains after the UK Maritime Trade Operations agency said a tanker caught fire after being struck about 70 nautical miles southwest of the Saudi port of Al Shuqaiq.

Yemen’s Houthi group claimed responsibility for the incident, saying it had targeted two Saudi tankers with drones and missiles for violating its declared maritime blockade.

The attacks heightened fears that shipping disruptions affecting the Strait of Hormuz could spread to the Red Sea and the Bab al-Mandab Strait, key transit routes for global crude oil and fuel shipments.

The incident came hours after US President Donald Trump warned that Washington would strike an Iranian bridge or power plant each time Tehran attacked a vessel in the Strait of Hormuz.

The warning pointed to a further escalation following the collapse of the US-Iran ceasefire.

Iran responded by warning that it would retaliate against US-linked infrastructure and energy assets across the region if Washington carried out the threatened strikes. (AA)

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