Oil hits $100 a barrel as Yemeni Houthis attacks on tankers passing Red Sea

Chicago – July 23, 2026

Global oil prices have breached the $100 per barrel threshold for the first time since May, following attacks by Yemen’s Iran-backed Houthi rebels on Saudi oil tankers in the Red Sea.

Brent crude, the international benchmark for more than two-thirds of global oil, rallied over 6% to hit $101.10 a barrel on Thursday, marking its highest level in eight weeks. U.S. West Texas Intermediate crude also surged more than 5%, reaching $91.49 per barrel. The sharp spike triggered declines across U.S. stock markets, with the Dow Jones falling over 450 points amid concerns about energy costs and inflation.

Escalating Conflict

The Houthi rebels claimed responsibility for striking two Saudi tankers—Encelia and Layla—with missiles and drones, citing violations of their announced naval blockade on Saudi ports and shipping. U.S. President Donald Trump responded by vowing “major military punishment” for Iran and its Houthi allies, as American attacks on Iranian targets entered their 12th consecutive night.

Supply Concerns

The attacks threaten to disrupt one of the world’s most critical energy transit routes, with the Red Sea serving as a vital corridor for global oil shipments. Saudi Aramco has begun offering additional crude cargoes for loading from Egypt’s Mediterranean port of Sidi Kerir as an alternative route amid the escalating threats.