Oil Prices Hit $100/Barrel Amid Escalating Middle East Tensions

Oil prices surged to over $100 per barrel on Thursday after a Houthi attack on two Saudi oil tankers in the Red Sea. The assault, which involved missiles and drones, has raised concerns about further restrictions on oil supplies from the Middle East.

The price of September Brent crude futures rose 20% in a week and crossed the psychological threshold of $100.6/barrel, up 36% in a month, due to expectations of a Saudi Arabian ground operation against the Houthis in Yemen and the intensification of the war between the US and Iran.

The Houthi blockade of shipping in the Red Sea threatens Saudi oil exports from Yanbu, a transportation hub that has redirected 6 million barrels per day of crude oil since the near-total shutdown of supplies through the Strait of Hormuz.