Middle East Conflict Escalates, Oil Prices Surge Past $100 Per Barrel

International oil prices have surged past $100 per barrel, with Brent crude for July delivery exceeding this mark on July 23. This sharp increase follows a Houthi rebel attack on Saudi oil tankers in the Red Sea and expanded U.S. airstrikes targeting Iran. The incident marks the first reported attack on shipping in the Bab el-Mandeb Strait since the Houthis declared a blockade.

The attack involved two Saudi oil tankers, identified as Enceladus and Layla, according to a Houthi statement. The UK Maritime Trade Operations confirmed that a tanker captain reported being hit by an unidentified projectile, resulting in a fire onboard, approximately 70 nautical miles southwest of Saudi Arabia's Shuaiba.

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We carried out a military operation targeting two Saudi oil tankers that violated the blockade. The ship names are Enceladus and Layla.

This price hike is significant, with Brent crude's monthly gain expected to reach 35.3%, the third-largest monthly increase in a decade. West Texas Intermediate (WTI) futures also saw a substantial rise, climbing over 5% to $91.40 per barrel, their highest point since June 11. WTI futures are also projected to achieve a monthly increase of around 30%, marking the third-largest monthly rise in ten years.

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A tanker captain reported being hit by an unidentified projectile and that there was a fire onboard.