Oil Settles Above US$100 as Houthi Attacks Intensify Middle East Supply Risks
- Oil prices settled above US$100 per barrel on Thursday, July 23, 2026, for the first time since May. The increase followed Houthi attacks on two Saudi oil tankers in the Red Sea, worsening global supply disruptions after a near-halt in trade through the Strait of Hormuz.
- Brent futures finished up US$6.62, or 7.0%, at US$100.69 per barrel, marking their highest close since May 22, 2026. The global crude oil benchmark is now nearly 40% higher than when the Iran war began in February, with almost all of its gains coming this month.
- U.S. West Texas Intermediate crude closed up US$5.36, or 6.2%, at US$92.19 per barrel, its highest close since June 4. The rise reflects mounting concerns over restricted tanker traffic and the rapid drawdown of global oil supplies.
- Yemen’s Houthis have opened a new front in the Iran war by targeting vessels carrying Saudi oil through the Bab el-Mandeb Strait after announcing a naval blockade on shipments from Saudi Arabia. The group said it attacked two Saudi tankers, while Saudi Arabia confirmed that one vessel was ablaze following an assault in the Red Sea.
- Iranian attacks on vessels crossing the strait and the reintroduction of a U.S. naval blockade targeting Iranian ports have sharply reduced oil traffic. Iranian oil loadings have likely fallen to zero from 1.5 million–2.0 million barrels per day at the start of July, while Gulf loading activity declined to 2.5 million barrels per day over the past seven days, compared with 6.0 million barrels per day over the previous 30 days.
- Analysts estimate that the Strait of Hormuz and Bab el-Mandeb carry the equivalent of roughly one-quarter of the global oil supply. According to Goldman Sachs, Brent could exceed US$120 per barrel in the fourth quarter and average US$100 in 2027 if the Strait of Hormuz remains disrupted, with further upside if the Bab el-Mandeb Strait and Suez Canal also experience persistent disruptions.
(Source: Reuters)