Oil prices extended their gains on Thursday amid deepening instability in the Middle East, with Brent crude briefly touching $105.82 a barrel before settling at $104.33 for November delivery — up 3.08% from the previous day.
Markets are also weighing fresh tensions in Yemen, where the Iran-backed Houthi militia has taken control of the strategic Red Sea port city of Mokha on the country's western coast, according to Yemeni military sources and eyewitness accounts. The move brings the rebels closer to the Bab al-Mandab strait, one of the world's most critical maritime chokepoints for global shipping traffic.
Pakistan has pressed Iran multiple times to rein in the Houthis, citing escalating combat in Yemen, according to security sources in Islamabad.
Meanwhile, signs of de-escalation between the United States and Iran remain absent. Iranian military leadership stated its forces are prepared for "blitz offensives" in national defense. Hassan Hassansadeh, commander of the Ground Forces of the Revolutionary Guards in the Tehran metropolitan area, told Iranian media: "Today we are ready to be present at any point in the country with high speed and destroy the enemy, regardless of its position."
The US-Iran conflict has recently centered on mutual artillery fire in the Persian Gulf over control of the Strait of Hormus. Over recent months, speculation has periodically surfaced regarding a limited US ground offensive to seize strategic islands off Iran's southern coast.
European natural gas prices also continued their rally. The benchmark TTF forward contract for next-month delivery rose 2.90% to €81.56 per megawatt-hour on the Amsterdam exchange — a level it had not reached since the end of 2022.
