Brent crude oil price tops $100 after Red Sea tanker hits

Brent crude oil price surged past $98 and briefly topped $100 a barrel Thursday after Yemen’s Houthis claimed drone and missile strikes on two Saudi tankers in the Red Sea. U.S. West Texas Intermediate also cleared $90 as traders priced in a wider Middle East supply squeeze, with oil up more than 30% this month.

Key Takeaways

• Brent futures crossed $100 for the first time since late May, while U.S. crude traded above $90.
• Iran-backed Houthis said they hit Saudi tankers Encelia and Layla after declaring a maritime embargo on Riyadh.
• President Donald Trump vowed to hold Iran responsible for future Houthi ship attacks and threatened “major military punishment.”
• Saudi Arabia has been moving about 4 million to 5 million barrels a day via the Red Sea to bypass Hormuz risk.
• Average U.S. pump prices jumped to $4.09 a gallon, according to AAA, lifting costs for drivers and income-focused portfolios.

For readers tracking commodities, energy stocks, and inflation-sensitive passive income, Thursday’s move was less about a single print and more about a second chokepoint coming under fire. Global benchmarks jumped after the Red Sea claims, according to CNBC and CNN live reporting.

What pushed Brent crude oil price above $98 today?

By mid-morning Eastern time, Brent was up about 6.4% near $100.08 a barrel on CNBC’s tape, after CNN reported an earlier move past $98 and a brief touch around $100.14. U.S. crude advanced roughly 5% to the low $91s, topping levels last seen in early June.

The spark was Yemen’s Houthis saying they targeted two Saudi oil tankers with drones and missiles for violating a maritime blockade declared against Saudi Arabia this week. Maritime trackers identified the vessels as the Encelia and Layla. Risk consultants said the strikes occurred roughly 70 nautical miles off the Saudi coast; satellite imagery appeared to show Encelia on fire, and Saudi officials confirmed a bow fire on that ship.

That matters because the Red Sea and Bab al-Mandeb had become an alternate path while Hormuz traffic stayed contested. Analysts told CNN the kingdom has been sending about 4 million to 5 million barrels a day that way. Hitting that lifeline raised fears that Middle East barrels could struggle to leave both the Gulf and the Red Sea at once.

Why does a Red Sea tanker attack lift U.S. oil too?

Oil trades as a global market. When one region looks short, demand shifts to barrels that can still move. CNN noted the United States has acted as a supplier of last resort during the Iran conflict, shipping jet fuel to Europe and diesel to Australia and Asia.

That support under U.S. crude has a side effect at the pump. As refiners prioritize jet fuel and diesel for export, they make less gasoline. AAA put the average U.S. retail gasoline price at $4.09 overnight, up from as low as $3.77 a few weeks earlier.

For wealth and passive-income readers, higher diesel, jet, and gasoline costs feed into inflation expectations, travel budgets, and the relative appeal of energy-linked income versus rate-sensitive assets. More context on positioning themes lives in our Wealth Hacks & Passive Income hub.

How far could prices climb if the conflict widens?

Helima Croft, global head of commodity strategy at RBC Capital Markets, told CNBC the U.S. war with Iran has entered a more dangerous phase as fighting spreads to the Red Sea and Iran targets Gulf infrastructure such as desalination plants.

Croft warned extreme pressure could push Brent above the 2022 high of $128 a barrel seen after Russia invaded Ukraine. In a worst-case full-scale regional war, she said Brent could even surpass the 2008 peak of $146.

Separate Black Sea risk is also tightening the tape. Croft said Ukraine has attacked more than 150 tankers in the Black Sea and Sea of Azov this month, forcing the Caspian Pipeline Corporation to stop loadings at its Black Sea terminal. About 80% of Kazakhstan’s crude normally moves that route, and June production near 1.7 million barrels a day could face shut-ins if the halt lasts.

Brent has already surged by around $27 a barrel this month—more than a third—according to CNN, underscoring how fast the risk premium has rebuilt.

What are Washington and Tehran saying now?

President Trump said the United States would hold Iran responsible for any future Houthi attacks on ships, threatening “major military punishment” on Tehran and militants in Yemen. The comments came hours after he warned Washington would destroy an Iranian bridge or power plant each time Tehran attacks a ship in the Strait of Hormuz.

An unnamed Iranian military source told state-run Tasnim that if the United States hits bridges or power plants in Iran, Tehran would strike regional infrastructure and bridges, including energy facilities where the United States has interests. Iran’s foreign minister has framed the doctrine as “an eye for an eye.”

Secretary of State Marco Rubio, speaking in Manila, said the Houthis had been “suckered” into attacking Red Sea shipping and urged de-escalation. The European Union’s foreign policy chief Kaja Kallas called the Houthi blockade threat a “dangerous escalation” and urged an end to actions that endanger seafarers.

Insurance uncertainty is compounding shipping risk. Lloyd’s Market Association drafted guidance allowing policies to treat toll payments to Iran—or agents—as grounds to cancel coverage, CNN reported, leaving fewer clean options as Hormuz and Red Sea routes both look contested.

Thursday’s tape does not settle the war, but it does reset the near-term energy checklist: watch Red Sea enforcement claims, Hormuz transit, Black Sea loadings, and U.S. pump prices. The Brent crude oil price above $98—and briefly over $100—is the market’s way of saying a second export corridor is no longer a free hedge.