Oil prices rise above $100 as Red Sea attacks spark US-Iran tensions

Global oil prices surged past $100 per barrel on Thursday, July 23, 2026, reaching their highest level in nearly two months as attacks on shipping in the Red Sea and escalating U.S.-Iran hostilities threatened two of the world's most critical energy supply routes. The international benchmark Brent crude rose sharply, with some reports indicating it climbed above $100.69, while U.S. West Texas Intermediate crude also saw significant gains, trading above $90.

The immediate catalyst was a claim by the Iran-aligned Houthi militia in Yemen that it had targeted two Saudi Arabian oil tankers in the Red Sea with missiles and drones, leaving one vessel on fire. The Houthis had earlier announced a naval blockade on Saudi ports in the area, a vital alternative route for Gulf oil exports that bypasses the already disrupted Strait of Hormuz. Maritime security reports indicated at least one Saudi-flagged tanker, the Encelia, was hit.

In response, U.S. President Donald Trump issued a warning on social media, stating the United States would hold Iran directly responsible for further Houthi attacks and threatening "major military punishment" against both Iran and the Houthis. This comes amid...