The rapid advance of ISIS through the Middle East is spreading concern that regional oil installations are at risk from the radical group’s onslaught across the Gulf. After taking Ramadi, the group seems to have set its sights on Baghdad, threatening Iraq’s largest city while sowing insurrection in other regions like the recent bombing in the oil rich eastern province of Saudi Arabia. Concerns of a broader conflict emanating from Yemen are also driving risk premiums for Brent crude oil higher as the enormity of the country’s geographical positioning is not lost on markets. Should the Houthi’s manage to control the territorial waters, it could spell problems for one of the globe’s most important seaborne oil routes, driving prices for key benchmarks ever higher on the possible of expanded hostilities. Prices have retreated from yesterday’s brief rally as a rising dollar adds to momentum lower in crude oil.