Oil Prices Skyrocket Beyond $100 Following Houthi Attacks on Saudi Tankers
Global oil markets experienced a significant shock on Thursday, July 24, 2026. Brent crude surged to $100.69 a barrel — a two-month peak — in the wake of attacks on two Saudi Arabian oil tankers in the Red Sea. These attacks were claimed by the Iran-backed Houthi rebels in Yemen, who alleged that the vessels violated a newly declared blockade of Saudi ports. The militants utilized missiles and drones for the attacks, triggering a ripple effect through energy markets and posing a potential worldwide inflation crisis.
FactSet data reveals that Brent crude rose by $5.76, or 6.1%, and the U.S. national average gas price escalated to $4.09 per gallon, a significant increase from $3.94 just a week prior. This supply disruption exacerbates the strain on the global energy network. According to Wood Mackenzie, crude exports from the region plummeted by 82% from January to June, and traffic through the crucial Strait of Hormuz is still recovering.
The oil shock had a profound impact on Wall Street. The S&P 500 dropped by 1.2%, the Dow Jones fell by 507 points, and the Nasdaq Composite tumbled by 2.2%. Some analysts are now cautioning that if the hostilities persist, prices could potentially surge above $120 a barrel later this year. “The focus now shifts to Saudi Arabia’s response,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. She noted that rerouting via the Suez is “a less efficient solution requiring smaller ships and longer voyages.”
Source: CBS News – Global oil prices hit $100 a barrel amid attacks in Red Sea