Oil Prices Rise to Five-Week High on US-Iran Attacks and Houthi Blockade Threat

• Oil prices climbed about 2% on Tuesday, July 21, 2026, to a five-week high amid concerns that energy supply disruptions in the Middle East could worsen following renewed attacks between the US and Iran and a threatened naval blockade of Saudi Arabia by Yemen’s Houthis.
• Brent futures rose US$2.12, or 2.4%, to US$91.34 per barrel, while US West Texas Intermediate (WTI) crude increased US$1.80, or 2.2%, to US$85.03. Brent was on track for its highest close since June 10, while WTI was headed for its highest close since June 11.
• Two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea following threats from Yemen’s Iran-aligned Houthis. The development came as US forces bombed targets in southern and western Iran overnight, Tehran targeted US sites in Bahrain, Kuwait and Jordan, and at least one tanker was hit in the Strait of Hormuz.
• The conflict has expanded beyond the Gulf, increasing the threat to global energy supplies and trade following the Houthis’ announcement of a naval blockade on Saudi Arabia on Monday. Although Saudi Arabia’s Red Sea port of Yanbu continued to operate normally, two tankers carrying Saudi crude to China and India made U-turns and headed towards the Suez Canal.
• The latest US attacks could represent a final attempt to strengthen Washington’s negotiating position before a compromise is reached and the Strait of Hormuz is reopened. However, the risk remains of a more prolonged stalemate characterised by uncertain energy flows, elevated oil prices and recurring attacks.

(Source: Reuters)