Brent crude futures crossed the $100 per barrel mark, closing at $100.69, gaining about 7%. U.S. West Texas Intermediate crude also rose about 6% to settle at $92.19. These surges come as oil prices have climbed more than 30% this month due to escalating conflicts in the Middle East. Al Jazeera reported that the price of Brent crude hitting $100 for the first time since May marks its highest point in nearly two months.
The rise in oil prices is directly linked to recent attacks on tankers in the Red Sea and President Trump's strong pronouncements. Houthi allies in Yemen claimed responsibility for targeting two Saudi oil tankers with drones and missiles. This follows their declaration of a maritime embargo against Saudi Arabia. Trump threatened "major military punishment" on Tehran and Houthi militants, warning he was considering a "massive attack" against Iran.
Analysts are expressing concern over the escalating situation. Helima Croft, global head of commodity strategy at RBC Capital Markets, noted that the U.S. conflict has entered a more dangerous phase with fighting spreading to the Red Sea and Iran reportedly targeting critical infrastructure. She warned that Brent prices could surpass the 2022 high of $128 per barrel, and even the 2008 peak of $146 per barrel in a worst-case scenario involving a full-scale regional war in the Middle East.
The Ukraine-Russia war is also contributing to pressures on global oil markets, according to Croft. She mentioned that Ukraine has attacked over 150 tankers in the Black Sea and Sea of Azov this month, forcing the Caspian Pipeline Consortium to halt crude loading at its Black Sea terminal. This disruption affects about 80% of Kazakhstan's oil exports, with the duration of the closure and the availability of alternative routes remaining uncertain.
