Global oil markets are experiencing a significant rally, with Brent crude pushing past $95 a barrel as geopolitical instability in the Middle East stokes fears over supply chain disruptions. Prices for both Brent and U.S. West Texas Intermediate saw a sharp increase of over 4% on Wednesday, reaching their highest levels since mid-June. This upward momentum is fueled by intensified military activity involving the U.S. and Iran, alongside heightened threats from Houthi militants aimed at critical shipping lanes in the Red Sea.

The situation is particularly volatile because of the dual threat to key transit points: the Strait of Hormuz and the Bab el-Mandeb strait. As the Houthis threaten vessels carrying Saudi oil, major shipping firms are opting to reroute tankers, adding significant logistical strain to global energy supplies. While the market remains sensitive to these disruptions, traders are also keeping a close eye on the latest U.S. inventory data, which shows a complex mix of rising crude stocks and falling gasoline supplies, further complicating the near-term outlook for energy prices.