Oil Tops $100 as Houthi Tanker Attacks Raise Supply Fears!

The Latest

Brent crude briefly rose above $100 a barrel on Thursday for the first time since May after Yemen’s Iran-backed Houthis claimed attacks on two Saudi oil tankers in the Red Sea, raising fears that the widening Iran conflict could further disrupt global oil supplies. U.S. benchmark West Texas Intermediate also surged, while average U.S. gasoline prices climbed to $4.09 per gallon.

Details

• Oil rally: Brent crude briefly touched $100.14 a barrel, rising more than 6%, while West Texas Intermediate climbed nearly 5% to about $91.
• Red Sea attacks: The Houthis claimed missile and drone attacks on the Saudi tankers Encelia and Layla, saying the strikes were part of their Red Sea blockade campaign.
• Supply risks: Analysts said Saudi Arabia ships about 4 million to 5 million barrels of oil a day through the Red Sea, making the route a critical alternative to the Strait of Hormuz for global energy markets.
• U.S. warning: President Donald Trump said Washington would hold Iran responsible for any future Houthi attacks on ships in the Strait of Hormuz, warning Tehran of “major military punishment.”
• Inflation pressure: Rising energy prices have renewed concerns over inflation, with the U.S. average gasoline price increasing to $4.09 per gallon while Treasury yields also moved higher.

What to Watch

Markets will watch whether further attacks disrupt commercial shipping through the Red Sea or the Strait of Hormuz and whether the United States or Iran responds militarily. Continued disruption could tighten global oil supplies, keep energy prices elevated and add further pressure to inflation.