Brent Crude Surges Past $100 on Escalating Red Sea Tensions
Brent crude oil prices surged past $100 per barrel on Thursday for the first time in two months, driven by escalating tensions in the Red Sea. The global benchmark closed at $100.69, a gain of about 7%, before easing back to $98.64 by Friday press time.
The move was sparked by Houthi forces claiming responsibility for attacks on two Saudi oil tankers, which they framed as enforcement of their blockade of Saudi ports declared on July 20.
The situation is complex, with the US and Iran having ruled out near-term talks, and President Donald Trump threatening 'major military punishment' over further attacks on vessels in the Red Sea. This has led to a compounding effect, with continued attacks on shipping around Hormuz and Asian buyers weighing longer and costlier routes.
The market is now pricing disruption from two unrelated conflicts: one in the Middle East and another between Ukraine and Russia. Kazakhstan halted crude transfers to the Caspian Pipeline Consortium terminal after drone strikes hit tankers loading there, further exacerbating supply disruptions.