Oil Prices Surge Past $100 After Houthi Attacks on Saudi Tankers in Red Sea

Brent crude rose more than 6% in late Thursday trading to above $100 a barrel, its highest level in eight weeks. US crude also climbed for a second straight session, rising more than 5% to nearly $92 a barrel, the highest since June 11.

The latest jump came after Tehran-backed Houthi rebels claimed attacks on two Saudi oil tankers in the Red Sea. The group had earlier announced a naval blockade on the kingdom.

The attacks appeared to mark a widening of the conflict. Since the Iran war began, vessel attacks had largely been concentrated around the Strait of Hormuz. The latest claims suggest the threat may now be spreading to the Red Sea, opening another front for oil markets to worry about.

The Red Sea route is important because millions of barrels of oil pass through the Bab el-Mandeb strait on their way to global markets. The waterway also carries about 12-15% of global maritime trade, worth more than $1 trillion a year.

It has also been used as an alternative route while traffic through the Strait of Hormuz remains disrupted. Ship crossings through Hormuz fell to single digits on Tuesday.

Oil prices have now risen about 35% since the start of the month. They are up more than 60% so far this year.

The rise in crude has also pushed up fuel prices. The national average price of gasoline in the US rose to $4.09 a gallon on Thursday from $4.06 on Wednesday, according to AAA data tracked by NBC News.

The price rise has erased much of the relief that followed a memorandum of understanding signed by the US and Iran in mid-June. That agreement has now collapsed. President Donald Trump on Wednesday threatened to target an Iranian bridge or power plant for every vessel attacked by Tehran.

Hours later, the Houthis claimed they had hit two tankers in the Red Sea.

The United Kingdom Maritime Trade Operations said a tanker had been struck by an unknown projectile north of the Bab el-Mandeb strait. Saudi state media also reported that the tanker Encelia was set ablaze in an overnight Red Sea attack, citing an unidentified transport authority source. The report did not mention the Layla.

The oil surge has also fed concerns about inflation and pushed bond yields higher. The US 10-year Treasury yield traded at 4.67% early Thursday, its highest level since January 2025.