Analyst warns oil market underpricing geopolitical risk as prices hit June highs

The Houthi movement has declared a naval blockade on Saudi Arabia, leading to the diversion of at least nine vessels, including seven Saudi oil tankers, in the Red Sea. This action exacerbates regional instability and poses a direct threat to maritime security and energy export routes, with the U.S. maintaining an adversarial posture toward Iran, a key Houthi ally. Russia and Iran have simultaneously concluded strategic consultations in Moscow, signaling continued alignment amidst regional instability.