Brent Crude Surges Past $100 as Red Sea Threats Intensify

Oil prices surged by double-digit percentages last week due to a series of disruptions in key shipping routes. The price of Brent crude settled above $100 per barrel for the first time since May, while WTI approached $91.49 per barrel intraday.

The increase was largely driven by threats to two critical maritime passages: the Bab el-Mandeb Strait and the Caspian Pipeline Consortium pipeline in Kazakhstan. The Houthi forces declared a naval blockade against Saudi Arabia, which led to confirmed strikes on two Saudi oil tankers operating within the Red Sea corridor.

The targeting of these tankers effectively created a secondary chokepoint threat that neutralized Saudi Arabia's routing workaround, highlighting the 'chokepoint substitution problem.'