Oil prices near $99 as Houthi attacks raise shipping risk

Oil prices surged to their highest levels in nearly two months on Thursday, July 23, 2026, driven by fears that the conflict between the United States and Iran is widening and threatening critical global shipping routes. The price of Brent crude, a key global benchmark, rose more than 4% to approach $99 per barrel, while U.S. West Texas Intermediate crude climbed above $90.

The immediate catalyst was a claim by Yemen's Iran-aligned Houthi rebels that they had attacked two Saudi oil tankers, the Encelia and the Layla, in the Red Sea. The Houthis stated the vessels were targeted for violating a naval blockade the group announced earlier this week. While Saudi authorities have not confirmed the extent of any damage, the incident marks a significant expansion of the conflict beyond the Strait of Hormuz, opening a new front that directly imperils a vital energy corridor.

The Bab el-Mandeb Strait, connecting the Red Sea to the Gulf of Aden, is a crucial chokepoint for global maritime trade, with millions of barrels of oil transiting through it daily. Any sustained disruption could force tankers to take much longer routes around southern Africa, increasing costs and tightening supply....