Oil jumps toward $100 after Houthis claim tanker strikes
Brent crude climbed above $98 after Houthi militants said they targeted two Saudi Arabian oil tankers in the Red Sea.
By Sal Moretti · Money Reporter
3 min read
Oil raced toward the $100 mark on Thursday after Yemen’s Houthi militants said they had attacked two Saudi Arabian oil tankers in the Red Sea, adding another jolt to an already tense energy market.
MarketWatch reported that Brent crude’s front-month contract rose more than 4% to $98.20 a barrel, reaching levels not seen in two months. West Texas Intermediate crude for September delivery gained almost 4% to $89.97 a barrel, its highest level in six weeks.
The price move came after the Houthis claimed missile and drone strikes against the Saudi vessels. Yahya Saree, the group’s military spokesperson, said on Telegram that the ships had “violated the blockade,” according to MarketWatch.
The Houthis had previously announced a maritime embargo on Saudi Arabia during the war in Iran, MarketWatch reported. The report did not include confirmation that the tankers were hit or any response from Saudi authorities.
Red Sea risk hits oil traders again
The Red Sea has become a fresh worry point for traders watching the flow of crude and commercial shipping through the region. The latest Houthi claim landed as investors were already weighing the impact of renewed fighting between the U.S. and Iran.
Economists at Handselbanken led by James Sproule wrote in a Thursday note cited by MarketWatch that Brent crude has gained about 30% since the U.S. and Iran resumed fighting after a recent ceasefire. They said that rise could continue if strikes keep going.
U.S. Central Command said it would conduct a 12th night of strikes against Iran, with targets including maritime capabilities, missile and drone storage sites, coastal surveillance facilities and air-defense assets, according to MarketWatch.
Centcom said in a statement quoted by MarketWatch that the strikes “further degrade Iran’s ability to attack civilian mariners and commercial vessels.”
Strait of Hormuz worries hang over the market
The fighting has sharpened questions about when shipping through the Strait of Hormuz might return to more typical levels. MarketWatch reported that peace talks between Washington and Tehran no longer appeared to be close.
That matters for oil because the region is central to global energy transport, and any threat to tankers can quickly feed into prices. Thursday’s jump pushed the global benchmark close to $100, a level that can rattle consumers, companies and governments watching fuel costs.
RBC Capital Markets strategists led by Peter Schaffrik wrote in a Thursday note cited by MarketWatch that oil reserves are being released for now, helping to cushion the pressure.
The RBC team said inventories may be harder to draw down by autumn, creating a possible pressure point before the winter heating season. For the moment, they added, supplies remain enough for economies to keep operating relatively normally.
For traders, the immediate message was clear: fresh claims of attacks in the Red Sea, continued U.S. strikes on Iranian targets and fading hopes for quick diplomacy have put oil back on a fast track higher.
This story draws on original reporting from MarketWatch.