Oil prices rose Thursday as markets assessed the risk that fighting involving the United States, Israel and Iran could intensify.
And Israeli forces have developed plans for renewed military operations against Iran, including a possible short, intensive campaign after the Nov. The Pentagon has been instructed to prepare options for resuming major combat operations, but the directive did not set a launch date and President Donald Trump has not made a final decision.
The security situation around Saudi Arabia has also worsened. The United States ordered non-emergency government employees and their families to leave the country, while officials cited increased attacks by Iran-aligned Houthi forces against civilian targets. Travel advisory warns that Iranian and Houthi missiles and drones have targeted or threatened Saudi cities, airports, infrastructure, military bases, diplomatic sites and energy facilities. It says hostilities between the United States and Iran began Feb. 28 and that commercial flights from Saudi Arabia have at times been significantly disrupted.
The Strait of Hormuz remains central to the confrontation between Washington and Tehran, while Houthi activity near the Bab al-Mandeb creates a separate threat to traffic linking the Red Sea with the Gulf of Aden. The immediate price reaction reflects concern that renewed strikes or additional attacks could disrupt supply, although no new U.S. Military operation has been confirmed.