Global oil prices climbed above $100 a barrel on Thursday for the first time since May, as escalating conflict involving Iran in the Strait of Hormuz and renewed Houthi attacks in the Red Sea heightened concerns over further disruptions to global energy supplies and a fresh wave of inflation.
Brent crude rose more than 6% to reach $100 per barrel shortly after 4 p.m., extending its strong gains throughout the month. Meanwhile, U.S. benchmark West Texas Intermediate (WTI) crude increased by 5.29% to $91.34 per barrel.
The latest price surge accelerated after Yemen’s Iran-backed Houthi rebels claimed responsibility for attacks on two Saudi oil tankers in the Red Sea. The attacks followed the group’s announcement earlier this week that it would impose a maritime blockade on Saudi Arabia.
The targeting of Saudi vessels has raised fears that the Houthis may attempt to disrupt shipping through the Bab el-Mandeb Strait, a strategic waterway linking the Red Sea with the Gulf of Aden and the Indian Ocean.
The route has become increasingly vital for Saudi oil exports after Iran assumed control of the Strait of Hormuz during the early days of the ongoing conflict. Analysts warn that the latest attacks also threaten to derail the four-year ceasefire between Saudi Arabia and the Houthi movement.
U.S. President Donald Trump recently warned Tehran that it would be held responsible if the Houthis launched further attacks against commercial shipping, further escalating tensions in the region.
Brent crude last traded above the $100 threshold on May 26 before falling sharply in June after Washington and Tehran agreed to extend a temporary ceasefire and reopen the Strait of Hormuz, raising expectations that global oil flows would normalize. Those hopes have since faded following renewed hostilities.
The sharp rise in oil prices also triggered renewed selling in global bond markets and weighed on U.S. equity futures.
The yield on the benchmark 10-year U.S. Treasury note climbed to its highest intraday level since January 2025. During early U.S. trading, the yield reached 4.711%, surpassing this year’s previous high of 4.687% recorded in May, according to Tradeweb data.
Bond yields have been rising steadily since the collapse of the U.S.-Iran ceasefire at the end of June, as investors increasingly fear that higher energy prices could fuel inflation and prompt the U.S. Federal Reserve to raise interest rates again in the coming months.
The latest Houthi attacks on Saudi shipping have added further pressure to financial markets, reinforcing concerns that continued instability in the Middle East could have significant consequences for global energy markets and the broader world economy.
