Oil Prices Surge Past $100 Amid Red Sea Tensions

Global oil benchmarks Brent and WTI surged past psychologically significant levels on Thursday, July 23, as tensions in the Red Sea escalated. Brent crude jumped about 7 percent to settle at $100.69 per barrel, touching an intraday high of $102, its strongest level since late May.

The immediate trigger was a reported strike on two Saudi oil tankers in the Red Sea, which Yemen's Houthi rebels claimed as part of a declared naval blockade against Saudi Arabia. The route is a critical alternative for crude shipments given ongoing disruptions in the Strait of Hormuz, where vessel traffic has slowed to a trickle amid the broader US-Iran conflict.

Adding to the pressure, US President Donald Trump threatened further military action against the Houthis, while open-source flight-tracking data pointed to additional American military assets moving into the region. This has left investors and analysts on high alert for potential supply disruptions.