Oil prices have increased to as high as $98 per barrel after Iran-backed Houthi militia claimed responsibility for attacking two Saudi oil tankers in the Red Sea region on Wednesday.

Brent, the global benchmark for crude oil prices, rose by 4.37 per cent to $98.18 per barrel, while its U.S. counterpart, West Texas Intermediate, rose by 3.63 per cent to $89.98 per barrel.

Houthi rebels in Yemen targeted two oil tankers, named Encelia and Layla, with drones and missiles for allegedly violating their blockade of Saudi ports.

Reports said one of the affected tankers was transporting Saudi crude oil to India, while the other was carrying ‘cargo’ to China.

“We targeted two Saudi oil tankers, named Encelia and Layla, for their violation of the blockade decision issued by the armed forces,” Houthi military spokesman Yahya Saree said in a telecast.

The attack reportedly triggered a fire at the bow of one of the affected ships, while all crew members were reported safe.

On July 20, Houthi military spokesperson, Yahya Saree, announced an immediate maritime embargo against Saudi Arabia in retaliation for the country’s long-running blockade of Yemen’s ports and airports.

The latest increase in global oil prices has continued to stir concerns about the effects of the escalating U.S.-Iran conflict.

The oil prices surge is believed to be a consequence of oil export disruptions which has moved from the Strait of Hormuz to the Red Sea and the Bab el-Mandeb Strait.

The strait, located between northeastern Africa and the Arabian Peninsula, is a major transit route for oil exports from countries including Saudi Arabia, Iran, the United Arab Emirates (UAE) and Kuwait.