Brent crude hits $100 as Houthis strike Saudi tankers in Red Sea

Global oil prices surged toward $100 per barrel on Thursday as Yemen's Houthi militia struck two Saudi oil tankers in the Red Sea, compounding supply fears already stoked by the ongoing U.S.-Iran conflict and the near-closure of the Strait of Hormuz.

Brent crude climbed as high as $100 per barrel during intraday trading, up more than 5% from the previous session's close, according to market data. West Texas Intermediate crude rose above $91, gaining nearly 5% on the day. Abu Dhabi's Murban crude surged over 19% to above $106 a barrel.ST+2

Houthi Attacks Open Second Front

The Houthi group said Thursday it struck two Saudi-flagged tankers, the Encelia and the Layla, with ballistic and cruise missiles and drones, claiming the vessels violated a recently announced Houthi naval blockade on Saudi Arabia. Saudi state media, citing the General Authority of Transport, confirmed the Encelia was hit while sailing in the Red Sea, resulting in a fire at its bow, though all crew members were safe. Saudi authorities did not confirm the attack on the Layla.youtube+1

The attacks, which reportedly took place about 130 kilometers off the Saudi coast, threaten to create a second chokepoint on global oil supplies alongside the disrupted Strait of Hormuz, according to The Straits Times.ST

Analyst Warnings

The dual disruption to two of the world's most critical oil transit routes has prompted a wave of analyst warnings. Goldman Sachs The Goldman Sachs Group, Inc. ↘ 1.26% has warned that Brent could surpass $120 a barrel by the fourth quarter if the Strait of Hormuz remains disrupted and Gulf production capacity suffers sustained losses. In an adverse scenario where exports do not normalize by the end of July, the bank sees prices averaging nearly $120.Financial Times+1

Barclays ↗ 0.90% raised its 2026 Brent forecast to $100 per barrel in early May, warning that prices could reprice toward $110 if disruptions persist.الشرق الأوسط

A Market Under Strain

Thursday's price spike marks a return to triple-digit territory not seen since the early weeks of the war, when Brent briefly surpassed $100 in March before pulling back as markets anticipated a diplomatic resolution. Oil prices had retreated below $70 by mid-June after the Strait of Hormuz partially reopened, but a fresh round of U.S. strikes on Iran and the Houthi escalation have erased those gains over the past week, with crude rising roughly 9% in the five sessions through Wednesday.J.P. Morgan+2

J.P. Morgan JPMorgan Chase & Co. ↗ 0.95% had forecast Brent averaging $86 in the third quarter, a projection that now appears overtaken by events.J.P. Morgan