Houthi Attacks Send Oil Prices Soaring Above $100
Oil prices surged to over $100 per barrel for the first time since May 22 as Yemen's Houthi rebels attacked two Saudi oil tankers in the Red Sea, disrupting global supply. The Brent futures price finished at $100.69 a barrel, up $6.62 or 7%, marking its highest close since May.
US President Donald Trump vowed 'major military punishment' for Iran and its Houthi allies following the attacks. The disruptions have intensified concerns over near-term global availability, with analysts estimating that the Strait of Hormuz and Bab el-Mandeb carry roughly a quarter of the world's oil supply.
Goldman Sachs predicts Brent could exceed $120 per barrel in the fourth quarter if the strait remains disrupted through 2027. The attacks have compounded the near-halt in Hormuz traffic and sharp reduction in Iranian exports, with loading activity within the Gulf falling to 2.5 million barrels per day over the past seven days.