Oil Prices Surge Past $100 Amid Middle East Tensions

On Thursday, oil prices exceeded $100 a barrel for the first time since late May, reaching $100.71 after Yemen’s Houthis attacked two Saudi oil tankers in the Red Sea. This incident heightened fears of global supply disruptions, particularly through the Strait of Hormuz, where trade has nearly halted.

Brent futures increased by $6.64, or 7%, marking a nearly 40% rise in the month. U.S.

West Texas Intermediate crude also rose, reaching $92.01. Tim Snyder, chief economist at Matador Economics, stated that the attack on Saudi tankers has escalated crude oil prices due to the constriction of trade routes.

The Houthis have threatened a naval blockade on Saudi shipments, and Goldman Sachs projected that Brent could exceed $120 a barrel in the fourth quarter if disruptions persist. Additionally, Iranian Revolutionary Guards claimed control over the Strait of Hormuz, warning that no tankers could enter or leave without their coordination.