Oil prices surged to their highest levels in nearly two months on Thursday, with Brent crude briefly breaking above $100 a barrel as attacks on Saudi tankers opened a dangerous new front in the Middle East conflict.

The latest rally is not simply another emotional response to geopolitical headlines. It reflects a deeper and more troubling change in the market: traders are no longer worried about disruption at only one vital shipping route. They are now confronting the possibility that threats could simultaneously affect both the Strait of Hormuz and the Bab el-Mandeb Strait, restricting the two main maritime exits used to move Middle Eastern energy toward the rest of the world.

The Price

Brent crude futures…