Global Oil Prices Skyrocket to $100 Per Barrel Following Devastating Red Sea Attacks
Oil prices surged to their highest level since early June on Thursday, following the latest escalation in the Iran conflict, which threatens to severely disrupt global supplies. Brent crude oil rose over 6% to more than $100 per barrel, its highest level in eight weeks, while US crude oil jumped over 5% to nearly $92 per barrel.
The price surge comes after Tehran-backed Houthi rebels claimed attacks on two Saudi oil tankers in the Red Sea, marking the first time ship attacks have spread beyond the Strait of Hormuz. The Bab el-Mandeb strait, where millions of barrels of oil pass through daily, has become a new front in the volatile conflict.
The Houthi threat has unsettled oil markets, as the strait is a critical waterway for global maritime trade, with 12% to 15% of global trade worth over $1 trillion passing through it annually. Since the start of the month, oil prices have risen by about 35%, and are now over 60% higher since the start of the year.
The rise in oil prices has also driven up gas prices, with the national average price reaching $4.09 per gallon on Thursday. This increase has erased much of the progress made towards lower prices after the US and Iran signed a memorandum of understanding in mid-June.
The conflict between the US and Iran shows no signs of easing, with President Donald Trump threatening to target Iranian infrastructure in response to vessel attacks. The escalation has raised fears of inflation, driving bond yields higher, with the US 10-year Treasury bond trading at 4.67% on Thursday, its highest level since January 2025. As a result, consumer borrowing rates have increased, with the average 30-year US mortgage rate rising to 6.77% on Wednesday.
The price surge comes after Tehran-backed Houthi rebels claimed attacks on two Saudi oil tankers in the Red Sea, marking the first time ship attacks have spread beyond the Strait of Hormuz. The Bab el-Mandeb strait, where millions of barrels of oil pass through daily, has become a new front in the volatile conflict.
The Houthi threat has unsettled oil markets, as the strait is a critical waterway for global maritime trade, with 12% to 15% of global trade worth over $1 trillion passing through it annually. Since the start of the month, oil prices have risen by about 35%, and are now over 60% higher since the start of the year.
The rise in oil prices has also driven up gas prices, with the national average price reaching $4.09 per gallon on Thursday. This increase has erased much of the progress made towards lower prices after the US and Iran signed a memorandum of understanding in mid-June.
The conflict between the US and Iran shows no signs of easing, with President Donald Trump threatening to target Iranian infrastructure in response to vessel attacks. The escalation has raised fears of inflation, driving bond yields higher, with the US 10-year Treasury bond trading at 4.67% on Thursday, its highest level since January 2025. As a result, consumer borrowing rates have increased, with the average 30-year US mortgage rate rising to 6.77% on Wednesday.
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