Brent crude oil prices surged above $100 a barrel on Thursday, marking their highest level since late May, triggered by attacks on two Saudi tankers in the Red Sea and escalating tensions fueled by President Trump's stern warning to Iran.
The Houthis, a Yemeni armed group, claimed responsibility for striking the Saudi tankers Encelia and Layla, alleging the vessels violated their newly declared maritime blockade. The Saudi state media confirmed that the Encelia caught fire during the transit, though thankfully all crew members remained unharmed. The UK Maritime Trade Operations reported the attack took place roughly 70 nautical miles southwest of Al Shuqaiq. Prior to the assaults, five Saudi tankers had already altered their routes after receiving warnings from the Houthis.
These incidents mark the first confirmed assaults on ships outside the Strait of Hormuz since the U.S.-Iran conflict heated up. The Red Sea and Bab el-Mandeb Strait are vital chokepoints, handling about 12 to 15 percent of global maritime trade, valued at over $1 trillion annually. The ongoing threats could endanger around 4 to 4.5 million barrels daily of Saudi crude oil shipments, raising concerns over supply security.
Trump Threatens Iran with Military Action
On his Truth Social platform, former President Trump explicitly held Iran accountable for any further attacks by the Houthis, branding them as proxies for Tehran. He warned of "major military punishment" against Iran and the Houthis, noting that while the group had previously operated strategically, they appeared to be escalating their actions anew. Trump has previously declared intentions to target Iranian infrastructure in retaliation for strikes in the Strait of Hormuz, even suggesting plans for a "massive attack" larger than anything before.
Following these developments, Brent crude saw gains of up to 7%, peaking above $101 before settling around $100.13 to $100.80 a barrel, according to exchange data. West Texas Intermediate also climbed more than 6% into the low $90s, levels unseen since early June. This price jump adds to a month where Brent jumped over 30%, placing current prices roughly 40% above pre-conflict levels from February and more than 60% higher year to date.
