Oil prices climbed above $100 a barrel for the first time since May, following attacks by Yemen's Houthi fighters on Saudi oil tankers in the Red Sea. The price surge extended a five-day rally, with Brent crude jumping more than 6 percent. The strikes mark an escalation in the Middle East conflict, now threatening a second major shipping route.
In response, US President Donald Trump promised "major military punishment" for Iran and its Houthi allies. The Houthi attacks hit two Saudi oil tankers, raising fears of further disruption to global oil supplies. The Red Sea is a key chokepoint for oil shipments, and the incident has intensified concerns that the conflict could spread to other sea routes.
The sharp rise in oil prices reflects market anxiety over potential supply interruptions. Brent crude breaking through the $100 threshold underscores the impact of geopolitical tensions on energy markets. Analysts warn that continued instability could keep prices elevated.
No group has claimed responsibility for the attacks, but the Houthis have previously targeted Saudi assets during the Yemen war. The situation remains fluid, with diplomatic efforts underway to de-escalate tensions.