Brent Tops $100 After Houthi Strikes on Saudi Tankers

Brent crude rose above $100 a barrel on Thursday after Yemen’s Houthi movement said it struck two Saudi oil tankers in the Red Sea. President Donald Trump posted on Truth Social that the United States would hold Iran responsible for future Houthi attacks and warned of “major military punishment.”

The Houthis said they used drones and missiles to hit the tankers Encelia and Layla while the ships transited the Red Sea. Saudi authorities reported the Encelia caught fire and that all crew members were safe. A maritime authority reported one strike about 70 nautical miles southwest of Al Shuqaiq. Five Saudi tankers had diverted course in the days before the latest attacks after Houthi warnings.

Brent futures climbed as much as 7% to an intraday high above $101 before trading near $100.13 to $100.80 a barrel. West Texas Intermediate rose more than 6%, reaching the low $90s. Brent has gained more than 30% over the past month, about 40% above levels before the U.S.-Iran conflict began in late February, and is up more than 60% year to date by some measures.

U.S. Central Command carried out its 12th consecutive night of strikes on Iranian drone and missile storage sites and on air defenses. Iran issued a warning that it would retaliate against infrastructure and energy assets linked to the United States in the region.

The strikes extend the fighting beyond the Strait of Hormuz into the Red Sea. The Red Sea and the Bab el-Mandeb Strait handle an estimated 12% to 15% of global maritime trade, worth more than $1 trillion a year. About 4 million to 4.5 million barrels a day of Saudi crude could face higher risk if attacks continue. Saudi Arabia can reroute some exports to the Yanbu terminal on the Red Sea, though that route is now threatened by the strikes.

Markets reacted immediately. The national average for regular gasoline rose to $4.091 a gallon from $4.060 a day earlier, and diesel averaged about $5.21 a gallon. The Dow fell roughly 600 points and the 10-year Treasury yield climbed above 4.70%, as investors priced in higher inflation and supply disruption risks.

International Energy Agency head Fatih Birol called for restored normal traffic through the Strait of Hormuz. A strategist at RBC Capital Markets warned the conflict had entered a more dangerous phase with fighting spreading to the Red Sea, adding that Brent could retest its 2022 high near $128 or approach the 2008 peak above $146 if the situation escalates further.

Traders and officials said they will monitor shipping data, strike reports and any diplomatic developments for signs about whether the Red Sea will remain a viable route for crude exports. Oman has been mentioned as a potential mediator in talks to reduce tensions.