Brent crude has broken back above $100 a barrel for the first time in nearly two months as escalating attacks on commercial shipping in the Red Sea deepen concerns that the Middle East supply
Brent crude has broken back above $100 a barrel for the first time in nearly two months as escalating attacks on commercial shipping in the Red Sea deepen concerns that the Middle East supply crisis is spreading beyond the Strait of Hormuz.The benchmark rose more than 7.5% to above $101 per barrel in mid-morning trading on Thursday.WTI crude also jumped sharply, rising more than 6.5% to almost $93 per barrel, its highest level since June 11.
Iran's Houthi allies in Yemen said they targeted two Saudi oil tankers with drones and missiles for violating a maritime blockade they declared against Riyadh this week.Several vessels have reportedly altered course or delayed transits through the chokepoint, threatening the export route Saudi Arabia has relied on to bypass disruptions in the Strait of Hormuz.Oil prices have surged more than 30% this month as fighting in the Middle East sharply escalates.
"The developments over the past week including the Houthis implementing a naval blockade in the Bab al-Mandeb, a lack of oil flows through the Strait of Hormuz, as well as Ukraine's drone campaign disrupting Kazakh oil flows from Russian export terminals have all pushed Brent crude prices above $100 per barrel," said Hamad Hussein, climate and commodities economist at Capital Economics.President Donald Trump said the US would hold Iran responsible for any future Houthi attacks on ships.
The oil shock hit broader markets hard. The Nasdaq fell 2.2% and the S&P 500 dropped 1.3% as traders priced the supply disruption directly into inflation expectations. "Inflation has remained top of the agenda for markets," said Deutsche Bank's Jim Reid, noting that strikes between the US and Iran show no sign of easing and that the Houthi tanker attacks are raising fears the conflict is widening, driving bond yields higher.
Crypto tracked the broader risk selloff. Total market cap slipped around 2% to approximately $2.21T, with $BTC near $64,700 and the Fear and Greed index falling to 37, deep into fear territory. Rate markets now price around an 82% chance of a September Fed hike, up sharply from 52% a week ago, per CME FedWatch, as the oil-driven inflation signal forces traders to reassess the path of monetary policy.
Sources:CNBC: Oil prices: WTI, Brent rise after attacks on Saudi tankersOilPrice.com: Brent Tops $100 as Houthi Attacks Push Oil Rally Into Triple DigitsThe National: Oil hits $100 for the first time since May after Houthi attacks on Saudi ships in Red Sea
