Brent Crude Oil Prices Surge to $100 Amid Red Sea Attacks

On Thursday, Brent crude oil prices climbed to $100 per barrel for the first time since May, driven by reports of Houthi attacks on vessels in the Red Sea. This development has sparked fresh concerns regarding potential disruptions to global energy supplies.

By roughly 10:50 a.m. ET, Brent crude increased by 7.1% to $100.74, while West Texas Intermediate crude rose by 5.3% to $91.40. The two benchmarks are now set for impressive monthly gains of about 40% and 30%, respectively.

Previous price rises this week were influenced by escalating fears over the collapse of peace negotiations between the U.S. and Iran, coupled with renewed conflicts in the Strait of Hormuz—a vital route for 20% of the world’s oil. Notably, this crucial waterway has been largely closed for months.

Concerns intensified with reports of fresh attacks in the Red Sea, casting doubt on another significant shipping route through the Bab el-Mandeb Strait, which transports around 7% of the world’s oil. This is all adding to what is already seen as the worst supply disruption in history.

The UK’s Maritime Trade Service shared on social media that a tanker had collided approximately 70 nautical miles from Saudi Arabia’s coast, resulting in a fire onboard while the crew attempted to manage the situation.

Fortunately, there haven’t been any casualties reported.

The Iranian-backed Houthi rebels stated they fired upon two ships in the Red Sea, claiming these vessels violated a naval blockade against Saudi Arabia.

Joe Adamski, managing director of supply chain consultancy Procure Ability, expressed uncertainty about oil price trends. “It’s hard to say with certainty,” he noted, “mainly because it’s unclear if the Houthis can effectively enforce a blockade or if they can successfully target shipping and Saudi export infrastructure.”

He added that if hostilities persist, prices could remain above $100, possibly rising to the $110 to $120 range. Conversely, if the situation stabilizes, prices might settle in the mid-$80s.

Jeff Krimmel, founder of Krimmel Strategy, echoed similar sentiments, warning that oil prices could keep trending upwards as long as conflicts continue in the Red Sea and Persian Gulf, along with ongoing threats from both sides.

“There’s really no safe ceiling for oil prices while the situation escalates,” he conveyed. “For prices to decline, some evidence of renewed diplomacy, particularly between the U.S. and Iran, would be necessary—though a robust agreement isn’t essential.”

The Houthi attack has not been independently verified yet.

President Trump pledged on Thursday to hold Iran accountable for any Houthi aggression, expressing disappointment in the rebels who, he stated, “have acted very professionally and wisely” until now.

“Let this be clear: if they strike again, the U.S. will hold Iran responsible. The Houthis are effectively Iran’s proxies, and there will be significant military consequences for both Iran and the Houthis,” he remarked on Truth Social.

Secretary of State Marco Rubio noted that it was a mistake for the Houthis to get involved in Middle Eastern conflicts, and suggested it would be wiser for them to stay mostly out of the Iranian war.

Interestingly, he pointed out that one of the ships targeted in the attack was registered in China, indicating potential diplomatic repercussions.

This attack in the Red Sea comes shortly after President Trump threatened to destroy Iranian bridges and power plants if they attack ships in the Strait of Hormuz, which heightens tensions even further.

The Iranian government has warned that it would respond by targeting U.S.-linked energy assets and infrastructure in the region, should the situation escalate.

Traders remain increasingly worried about the ongoing energy crisis, particularly after Trump declared earlier this month that the cease-fire with Iran was “over” and expressed a desire to cease dealings with what he termed “sick people.”

Rubio criticized Iran’s sincerity about pursuing peace, suggesting that they aren’t committed to making a reasonable agreement.