Red Sea Tanker Attacks Push Global Crude Costs Above $100 Mark

• Brent crude surpassed $100 per barrel for the first time since May.
• Houthi rebels targeted two Saudi tankers with drones and missiles in the Red Sea.
• Saudi oil loadings have fallen by 36% due to disruptions at the Bab el-Mandeb strait.
• Analysts warn prices could reach $120 if supply issues continue into the fourth quarter.
• The surge follows the collapse of a June 2026 ceasefire deal between the U.S. and Iran.

Global energy markets are facing renewed pressure as Brent crude oil prices surpassed the $100 per barrel threshold on 23 July 2026. This marks the first time since May that prices have reached this level, triggered by a series of aggressive actions in the Red Sea that have threatened international supply lines.

The surge follows reports in The Mirror regarding attacks by Yemen's Houthi rebels on two Saudi oil tankers, the Encelia and the Layla. The vessels were targeted using a combination of drones and missiles near the Bab el-Mandeb strait. While the Saudi Press Agency confirmed that a fire broke out on the Encelia, all crew members were safely accounted for. In response to the incidents, the Houthi group has declared a naval blockade on shipments from Saudi Arabia, specifically targeting vessels in the region.

Market data shows that Brent crude futures jumped by more than 6% to reach $100.65, while West Texas Intermediate (WTI) rose to approximately $91.49. These price hikes come at a time of heightening geopolitical instability following the collapse of an interim ceasefire deal and memorandum of understanding between the U.S. and Iran, which had been established in June 2026. The average U.S. gasoline price has already reached $4.09 per gallon following the surge in crude costs.

The disruption has significantly impacted oil logistics, with Saudi oil loadings reportedly dropping by 36% as the Bab el-Mandeb strait remains a high-risk zone. This route has become increasingly critical for global supply after Iran previously closed the Strait of Hormuz. Analysts from Goldman Sachs have warned that if these supply disruptions persist into the fourth quarter of the year, Brent crude could potentially rally above $120 a barrel.

International political responses have been swift. U.S. President Donald Trump warned of 'major military punishment' against both Iran and the Houthi rebels. Consequently, the U.S. military has conducted 13 consecutive nights of airstrikes against Iranian military targets, including drone facilities and missile storage sites, according to U.S. Central Command (CENTCOM). U.S. Secretary of State Marco Rubio has urged the Houthi rebels to cease their attacks, noting their previous absence from the direct U.S.-Iran conflict.

Tom Church, Co-Founder of LatestDeals.co.uk, said, "Ongoing volatility in global oil markets can lead to fluctuating prices at the pumps, making it important for households to budget for potential increases in transport and energy costs."