Brent crude hits $100 as Houthi attacks disrupt Saudi oil shipping
Brent crude hits $100 as Houthi attacks disrupt Saudi oil shipping
Brent crude hits $100 as Houthi attacks disrupt Saudi oil shipping
Global oil prices surged to $100 a barrel on Thursday, July 23, 2026, for the first time since May, as Yemen’s Houthi militia extended military operations to a second critical shipping chokepoint. The price spike follows Houthi claims of missile and drone strikes on two Saudi Arabian oil tankers, the Encelia and the Layla, in the Red Sea.
Brent crude futures rose by $5.83, or 6.2%, to $99.90 a barrel by 1310 GMT. U.S. West Texas Intermediate crude also climbed $4.41, or 5.08%, reaching $91.24, the first time it has exceeded $90 since June 11.
Expansion of the conflict
The attacks mark the opening of a new front in the ongoing Middle East war. The Houthis, who control northern and western Yemen, announced a naval blockade on shipments from Saudi Arabia. This targets the Bab el-Mandeb strait, also known as the Gate of Tears
, which controls access between the Red Sea and the Indian Ocean.
Saudi state news agency SPA confirmed one vessel was ablaze following an assault. A maritime security source reported that the Encelia sent a distress call after being hit by a missile near the Saudi port of Jizan late Wednesday.
U.S. And Iranian escalation
The U.S. Military recently completed a 12th consecutive night of attacks on Iran. In response, Iran’s Revolutionary Guards claimed the Strait of Hormuz is completely closed
and under their control, warning that no tanker may enter or leave without Iranian coordination.
President Donald Trump vowed major military punishment
for Iran and the Houthis via Truth Social, stating that the U.S. Will hold Iran responsible as the Houthis act as a proxy. Trump previously promised to destroy an Iranian bridge or power plant every time Iran fires at a ship in the Strait of Hormuz.
Economic and market fallout
The energy surge is reigniting global inflation fears and impacting financial markets. In the U.S., Treasury yields rose, with the two-year yield hitting a 17-month high. Traders have increased the probability of Federal Reserve rate hikes for July and September.
In Europe, diesel margins hit a record $66.25 a barrel on July 17, supported by a Russian diesel export ban and Middle East supply concerns. Diesel traded as high as $65.30 a barrel on Thursday.
Future Outlook
Financial analysts at Goldman Sachs suggest Brent could exceed $120 a barrel in the fourth quarter and average $100 next year if the Strait of Hormuz remains disrupted through 2027. Further price increases are possible if the Suez Canal and Bab el-Mandeb suffer persistent disruption.
Goldman expects prices to hold most gains through July and August due to declining global inventories, lower Middle East production, and a slowdown in the release of strategic petroleum reserves.
