Houthi Strikes Send Brent Crude Prices Soaring Above $98

Yemen's Houthi rebels have claimed responsibility for missile and drone strikes on two Saudi oil tankers in the Red Sea, sending crude prices soaring to their highest level in nearly two months. The attacks targeted the Encelia and Layla tankers, with the latter reportedly hit by a projectile and catching fire.

The UK Maritime Trade Operations Center confirmed that a tanker was struck about 70 nautical miles southwest of Al Shuqaiq, Saudi Arabia, but no casualties were reported. Brent crude prices rose above $98 a barrel on July 23, with the US West Texas Intermediate benchmark also climbing to near $89.

The conflict adds a new front to the ongoing tensions between the United States and Iran, which have already disrupted shipping routes in the Strait of Hormuz. Saudi Arabia has been rerouting oil exports through its Red Sea port at Yanbu to bypass the strait, but this workaround is now put at risk by the latest strikes.

Nigel Green, chief executive of deVere Group, warned that investors should reassess their exposure to energy prices due to the combination of tanker strikes and direct threats between Washington and Tehran. Energy analysts predict that the outcome will hinge on whether Red Sea tensions ease quickly or feed into a longer disruption to Gulf shipping routes.