Brent crude surged back into triple-digit territory on Thursday, rising above $100 per barrel for the first time since May, as fresh geopolitical tensions in the Red Sea rattled global oil markets. Yemen's Houthi group claimed responsibility for attacking two Saudi oil tankers in the Red Sea, reigniting concerns over the security of a key energy export route.
Red Sea tensions ignite supply fears
The Houthi group said on Wednesday that it had targeted two Saudi oil tankers, according to a statement attributed to local time. The attack came days after Saudi forces carried out strikes on Sanaa airport, further escalating the conflict between Riyadh and the Iran-backed group. In response, the US military conducted airstrikes on Iran for the 12th consecutive night on Wednesday, and Tehran retaliated by targeting US-linked military installations in Kuwait and Jordan, traders reported.
US President Donald Trump reacted to the attacks on Truth Social, writing: "Now they (Houthis) are starting up again, shooting at two Saudi Arabian ships last night. Please let this TRUTH serve to represent that if they do this again, the US will hold Iran responsible."
Analysts noted that the Houthis have moved beyond threatening a blockade of Saudi Arabia to actively striking vessels, raising concerns over the security of an export route that Riyadh has increasingly relied upon to bypass the Persian Gulf.
Price rally across benchmarks
The surge in international oil prices was mirrored across major benchmarks. Around 8 pm IST, Brent crude for September delivery on the Intercontinental Exchange (ICE) traded at $100.79 per barrel, up about 7% from the prior close. West Texas Intermediate (WTI) crude for September delivery on the New York Mercantile Exchange (NYMEX) rose nearly 6% to $91.83 per barrel. In domestic markets, crude futures for August delivery on the Multi Commodity Exchange (MCX) climbed Rs 477, or nearly 6%, to Rs 8,887 per barrel.
Brent crossed the $100 mark for the first time since May 15, 2026, when it traded at $100.32 per barrel. The recent rally marks a sharp reversal from earlier levels: analysts said Brent had peaked at $126 per barrel during the height of the conflict in April before falling to around $71 per barrel at the start of this month.
| Benchmark | Price | Change |
|---|---|---|
| Brent Sep (ICE) | $100.79/bbl | +7% |
| WTI Sep (NYMEX) | $91.83/bbl | +6% |
| MCX Aug (Rs/bbl) | Rs 8,887 | +6% |
Geopolitical risk premium and outlook
Analysts said the latest escalation in the Red Sea has made geopolitical risk the key driver of the rally, with crude posting its fastest monthly gain since disruptions to Gulf oil exports through the Strait of Hormuz earlier this year. The conflict has entered a more dangerous phase over the past 24 hours, they added.
Looking ahead, Goldman Sachs projected that Brent crude could rise to as high as $120 per barrel by the end of the year if exports through the Strait of Hormuz are not restored. Traders are now closely monitoring developments in the Red Sea for any further disruptions to oil flows from the region.
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