Middle East conflict drives Brent crude back above $100
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Brent crude oil returned to $100 per barrel on July 23, nearly a third above last month's low, as the US-Iran conflict escalated. Houthi rebels attacked two Saudi tankers and threatened to block the Bab el-Mandeb strait, adding to the near-closure of the Strait of Hormuz. Prices remain below the April peak of $126.
Price Surge Drivers
Brent crude rose to $100 per barrel on July 23, up nearly 30% from last month's low, after the US launched its 12th consecutive airstrike on Iran, targeting missile and drone storage sites. The escalation follows Houthi attacks on two Saudi oil tankers on July 22, with the rebels threatening to block commercial shipping through the Bab el-Mandeb strait. The Strait of Hormuz remains effectively closed by Iran, compounding supply fears.
Red Sea Chokepoint Risk
The Bab el-Mandeb strait is particularly vulnerable to Houthi blockade, according to energy analysts. Before the attacks, about 2.5 million barrels per day of Saudi oil passed through the strait, said Jorge Leon, senior vice president at Rystad Energy. Saudi Arabia and the UAE had been using the Red Sea route to export about 6.8 million barrels per day — roughly half their normal Hormuz volumes — via pipelines to ports outside the Gulf.
What's Next
The US is expected to continue airstrikes against Iran, while Houthi threats to block Bab el-Mandeb could further disrupt oil flows. It remains unclear whether Saudi Arabia can sustain exports through alternative routes or if prices will test the April peak of $126.
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Middle East conflict drives Brent crude back above $100
