Brent crude settled above US$100 per barrel on Thursday after attacks on Saudi oil tankers heightened concerns about energy shipments through two major Middle East waterways.
The international benchmark closed at US$100.69 per barrel on July 23. It gained US$6.62, or 7%, and recorded its highest settlement since May 22, Reuters reported.
United States West Texas Intermediate crude rose US$5.36, or 6.2%, to settle at US$92.19 per barrel. That marked its highest close since June 4.
The increase followed attacks on two tankers carrying Saudi oil through the Red Sea. Yemen’s Houthi militia said it carried out the attacks after announcing a naval blockade on shipments from Saudi Arabia.
Trump seeks 20% fee on Hormuz cargo, reinstates Iran blockade | OilNOW
Saudi Arabia’s state news agency later confirmed that one of the vessels caught fire after it was attacked while sailing in the Red Sea. The agency did not identify who carried out the attack.
The Houthis said they targeted vessels transporting Saudi crude through the Bab el-Mandeb Strait. The waterway connects the Red Sea with the Gulf of Aden.
The attacks raised concerns about a second major oil transit route while movements through the Strait of Hormuz remained severely restricted.
Analysts estimate that the Strait of Hormuz and Bab el-Mandeb carry the equivalent of about one-quarter of global oil supply.
Iran’s Revolutionary Guards said the Strait of Hormuz remained under its control and was “completely closed” while United States military action continued in the region. The group warned that tankers would not be allowed to enter or leave without coordinating with Iran.
United States President Donald Trump threatened “major military punishment” against Iran and its Houthi allies.
Saudi Aramco has offered additional crude cargoes from Egypt’s Mediterranean port of Sidi Kerir as the threats create risks for Saudi exports moving through the Red Sea. The additional supplies would reach the Mediterranean through the Suez-Mediterranean Pipeline.
Goldman Sachs said Brent could exceed US$120 per barrel during the fourth quarter and average US$100 in 2027 if disruption through the Strait of Hormuz continues. The bank identified further upside if the Bab el-Mandeb Strait and Suez Canal also face prolonged disruption.
Brent was trading at US$86.19 per barrel when OilNOW last reported on the market on July 14. The July 23 settlement represents an increase of about 16.8% from that level.
