TLDR
- Brent crude topped $100 a barrel Thursday for the first time since May 26
- Houthi militants claimed attacks on two Saudi oil tankers in the Red Sea
- The U.S. completed its 12th straight night of strikes on Iran
- Iran declared the Strait of Hormuz “fully closed” to unauthorized tankers
- ExxonMobil and Chevron shares rose, while S&P 500 futures fell over 1%
Oil prices surged past $100 a barrel on Thursday as fighting in the Middle East escalated and key shipping routes came under threat.
Brent crude futures hit $100.06 a barrel, the first time at that level since May 26. West Texas Intermediate jumped nearly 5% to around $91 a barrel.
The moves came after Houthi militants in Yemen claimed they attacked two Saudi oil tankers in the Red Sea. The Houthis said the ships violated a maritime blockade they had announced earlier in the week.
Saudi authorities have not confirmed any damage, but the attacks raised fresh fears about supply disruptions in one of the world’s busiest oil shipping corridors.
BREAKING: President Trump says the US will “hold Iran responsible” for strikes conducted by Yemen’s Houthis.
Last night, the Houthis struck two Saudi Arabian vessels in the Red Sea. pic.twitter.com/URN74tlufl
— The Kobeissi Letter (@KobeissiLetter) July 23, 2026
Earlier this week, the Houthis threatened to block Saudi-linked vessels from using the Bab el-Mandeb Strait, a chokepoint connecting the Red Sea to the Gulf of Aden. Several Saudi tankers bound for India and China had already changed course following those warnings.
Strait of Hormuz Under Pressure
The U.S. military carried out its 12th consecutive night of strikes on Iran. Iran’s Islamic Revolutionary Guard Corps said one of three tankers caught fire near a mined shipping route south of the Strait of Hormuz.
Iran then declared the Strait of Hormuz “fully closed,” warning that oil tankers would need prior coordination with Iranian authorities before passing through.
Together, the Strait of Hormuz and the Bab el-Mandeb handle a large share of global seaborne crude shipments. Any sustained disruption could force tankers to reroute around southern Africa, adding time and cost to voyages.
President Trump responded on social media, warning Iran and the Houthis of “major military punishment” if attacks on shipping continued.
The U.S. had accused Iran of “not being serious” about peace talks just a day earlier.
Oil Stocks Rise, Broader Market Falls
Higher crude prices lifted shares in U.S. oil companies. ExxonMobil rose about 1.5% in premarket trading, and Chevron climbed roughly 1.9%.
The broader market did not follow. S&P 500 futures dropped more than 1% ahead of the opening bell.
U.S. government data added a twist to the supply picture. The Energy Information Administration reported a surprise build in crude inventories of 2 million barrels for the week ending July 17, bringing total commercial crude stocks to 411.7 million barrels.
Gasoline and distillate inventories also rose. Despite the inventory build, traders focused more on the risk of supply disruptions from the conflict than on short-term stock levels.
Analysts warned the situation could continue to weigh on markets if the conflict drags on without resolution.
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