📈 Oil Prices Reach 6-Week High Amid Middle East Escalation

• Global Market Overview: Brent crude futures surged +2% (up $1.93) to $96/bbl, while U.S. West Texas Intermediate (WTI) rose +1.7% (up $1.44) to $88.27/bbl following heightened geopolitical conflict. • Geopolitical Drivers: The U.S. launched its 12th consecutive night of military strikes on Iran. Escalating tensions near the Strait of Hormuz led to an oil tanker catching fire after an explosion, with Iran’s Revolutionary Guards declaring the key route "completely closed." Yemen's Houthis declared a naval blockade on Saudi Arabia in the Bab el-Mandeb Strait, attacking the Saudi-flagged tanker Encelia in the Red Sea. • Supply Deficit & Stock Updates: U.S. crude inventories unexpectedly rose by 2 Mn barrels last week due to reduced refinery activity and exports, defying analyst forecasts of a 1.1 Mn-barrel draw. • Macro Impact: The global energy supply shock and Red Sea freight disruptions present heightened import bill risks for energy-dependent markets like Sri Lanka's petroleum & energy sector.