Houthi Attack Sends Brent Crude Soaring Past $100
Geopolitical tensions in the Middle East have escalated once again, causing a significant surge in global crude markets. On July 23, Yemen's Houthi militants launched military strikes against two Saudi Arabian oil tankers, sending Brent crude futures soaring over 7% to break above $100 per barrel for the first time since late May.
The attack targeted critical infrastructure: the Bab el-Mandeb Strait, a strategic choke point between the Red Sea and the Gulf of Aden. The Houthi-controlled territory in Yemen overlooks this vital shipping route, which has been severely restricted since the outbreak of conflict between the U.S.-Israel alliance and Iran.
Data shows that recent average daily crude loadings at Yanbu have approached the pipeline's peak capacity of 7 million barrels per day. The Houthi action directly targeted this 'lifeline,' forcing approximately 10 ships to turn back and reducing traffic through the Bab el-Mandeb Strait by 34% on the day.
The cascading chain of disruptions has pushed global crude supply into increasingly precarious territory. Goldman Sachs analysts warned that if shipping through the Strait of Hormuz remains disrupted, Brent crude prices could break above $120 per barrel in the fourth quarter.