US Strikes Oil Tanker in Strait of Hormuz as Brent Crude Surpasses $100 Amid Rising Middle East Tensions

Brent crude oil prices surged past $100 per barrel on Thursday for the first time in months, driven by escalating tensions in the Middle East. The immediate trigger was reports of attacks on two Saudi oil tankers in the Red Sea, claimed by the Iran-backed Houthi group, which declared a maritime blockade preventing Saudi vessels from leaving the Red Sea in retaliation for Saudi strikes on Yemen's capital, Sanaa. This development raised fears of a new front in the US-Iran conflict and intensified pressure on an already strained oil market.

Brent futures jumped nearly 7%, reclaiming the psychological $100 barrier, while US West Texas Intermediate (WTI) futures rose 5.3%, surpassing $91 per barrel, a peak not seen since the US-Iran nuclear deal draft over a month ago. The Red Sea has become a critical outlet for oil trapped in the Persian Gulf, and concerns are mounting that shipping disruptions similar to those in the Strait of Hormuz could occur there as well.

The current crisis stems from Iranian attacks on vessels in the Persian Gulf, disrupting traffic through the Strait of Hormuz, a vital route for about 20% of global oil trade. In response, Saudi Arabia has maximized the capacity of its East-West pipeline, which transports up to 5 million barrels of crude daily from the Persian Gulf to the Red Sea port of Yanbu. According to Goldman Sachs, approximately 9 million barrels per day passed through the Bab el-Mandeb Strait last month, linking the Red Sea to the Gulf of Aden.

If the Bab el-Mandeb Strait is completely blocked, the only alternative route for oil exports from the Red Sea would be the northern passage through the Suez Canal. However, the canal's depth of about 20 meters limits the transit of the largest fully loaded oil tankers, adding significant time and logistical challenges to shipments.

Meanwhile, about 1,300 miles east, the US conducted its 12th consecutive day of airstrikes inside Iran overnight. These attacks follow President Trump's warnings that any Iranian aggression against ships in the Strait of Hormuz would prompt US retaliation targeting Iranian infrastructure, including bridges and power stations in or near Tehran. The dual-front escalation is already impacting shipping: intelligence firm Kpler reported a 31% daily drop in vessel transits through the Strait of Hormuz and a 34% decline through the Bab el-Mandeb Strait as of Tuesday.