Global crude benchmarks surged above $100 a barrel, driven by expanding Middle East conflict and fresh maritime attacks on oil tankers in the Red Sea. Brent crude climbed 7% to close at $100.69 per barrel, touching an intraday high of $102, according to reporting cited by NBC News.
Oil Prices Surge Past $100 a Barrel Following Red Sea Tanker Attacks and U.S.-Iran Escalation
Red Sea Disruptions Expand the Conflict
The latest market volatility follows claims by Tehran-backed Houthi rebels that they targeted two Saudi oil tankers in the Red Sea. According to reports from the state-run Saudi Press Agency and the United Kingdom’s Maritime Trade Office, the tanker Encelia was set ablaze by an attack while sailing overnight north of the Bab el-Mandeb strait. This incident marks the first time ship attacks have extended beyond the immediate vicinity of the Strait of Hormuz since the current conflict began.
Energy markets remain acutely sensitive to disruptions in the Bab el-Mandeb strait, a vital maritime artery through which roughly 12% to 15% of global maritime trade passes annually. With traffic through the Strait of Hormuz largely stalled—recording single-digit ship crossings—the Red Sea route serves as a critical alternative for international oil shipments. Oil prices have climbed approximately 35% since the beginning of the month and over 60% since the start of the year.
Spillover Effects on U.S. Gas Prices and Markets
The surge in crude prices immediately impacted domestic energy costs in the United States.
Financial markets reacted sharply to the resurgent energy inflation. Deutsche Bank’s global head of macro research, Jim Reid, noted that the ongoing strikes and widening Houthi attacks have kept inflation at the forefront of market concerns. Bond yields climbed in tandem with crude prices, as the U.S. 10-year Treasury bond yield touched 4.7%, marking its highest level since January 2025. Concurrently, average 30-year U.S. mortgage rates rose to 6.85%, and equity indices faced downward pressure as the S&P 500 declined 1.3% and the Nasdaq slid 2.4%.
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