NEW YORK: Global oil prices climbed above $100 per barrel on Thursday for the first time in nearly two months after Yemen’s Houthi rebels claimed responsibility for attacks on two Saudi oil tankers in the Red Sea, intensifying concerns over global crude supply disruptions amid ongoing tensions in the Middle East.
Brent crude, the international benchmark, rose $6.59 (7%) to $100.66 per barrel, marking its highest level since late May and extending its monthly gain to nearly 40%.
Meanwhile, US West Texas Intermediate (WTI) crude gained $5.45 (6.3%) to $92.28 per barrel, trading above $90 for the first time since June 11. Both benchmark contracts posted gains for a fifth consecutive trading session.
Houthi Attacks Fuel Supply Concerns
The latest rally followed reports that Yemen’s Houthi movement targeted two Saudi oil tankers in the Red Sea, adding another layer of uncertainty to global energy markets already grappling with severely disrupted shipping through the Strait of Hormuz.
“The attack on the Saudi tankers has pushed global crude prices sharply higher as yet another strategic chokepoint for Middle Eastern oil exports comes under threat,” said Tim Snyder, Chief Economist at Matador Economics.
Despite the attacks, shipping data showed that two Chinese supertankers carrying a combined four million barrels of Saudi crude successfully transited the Bab el-Mandeb Strait and exited the Red Sea on Thursday.
Goldman Sachs Warns Brent Could Reach $120
Investment bank Goldman Sachs warned that Brent crude could exceed $120 per barrel during the fourth quarter if disruptions in the Strait of Hormuz continue through 2027.
The bank also projected Brent could average around $100 per barrel next year, with further upside risk if disruptions extend to the Bab el-Mandeb Strait and the Suez Canal, two of the world’s most critical maritime trade routes.
Hormuz Traffic Continues to Decline
According to Giovanni Staunovo, energy analyst at UBS, Iranian attacks on commercial shipping have significantly reduced the number of non-Iranian oil tankers transiting the Strait of Hormuz.
He also noted that the reimposition of a US naval blockade targeting Iranian ports has effectively halted Iranian crude exports, reducing shipments from an estimated 1.5–2 million barrels per day at the beginning of the month to virtually zero.
The disruption has sharply reduced crude loading activity across the Gulf region.
Over the past seven days, average oil loadings have fallen to approximately 2.5 million barrels per day, compared with 6 million barrels per day during the previous 30-day period, reflecting the growing impact of regional instability on global energy supplies.
OPEC+ Expected to Raise Output
Despite mounting geopolitical risks, OPEC+ is expected to proceed with a modest production increase when the alliance meets on August 2.
According to Reuters sources, seven key producers—Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman—are likely to approve an output increase of approximately 188,000 barrels per day for September, matching the monthly production adjustments implemented in June, July and August.
However, analysts caution that ongoing regional conflict, particularly involving Iran, may limit the ability of some OPEC+ members to increase production, leaving global oil markets vulnerable to further price volatility.
With supply disruptions spreading across multiple strategic shipping routes, energy markets remain on high alert as geopolitical tensions continue to reshape the global oil outlook.
By Reuters
