Brent Oil Breaches $100 as Red Sea Strike Threatens Gulf Exports
Crude oil prices surged on Thursday, with global benchmark Brent crude briefly surpassing $100 per barrel, as escalating tensions in West Asia raised fears of fresh disruptions to energy supplies. The price jump, which saw Brent rise nearly 7% to $100.23 per barrel, marks the first time the marker has crossed the three-digit threshold since May 15, 2026.
On the Multi Commodity Exchange (MCX), crude futures for August delivery climbed by ₹477 (almost 6%) to ₹8,887 per barrel. Trading volumes grew after renewed attacks in the Red Sea region heightened concerns about the security of energy exports from Gulf nations.
The immediate trigger was a post on Truth Social by U.S. President Donald Trump, stating that Houthi forces had attacked two Saudi Arabian ships the previous night. Trump warned that if such attacks recur, the United States would hold Iran responsible. The Houthis, who control parts of Yemen, have escalated their campaign by targeting Saudi oil tankers in the Red Sea, a key route for Riyadh's oil exports avoiding the Persian Gulf.
In overseas markets, Brent crude for September delivery gained $6.16 (6.6%) to $100.23 a barrel, while West Texas Intermediate (WTI) crude for September rose $4.22 (5%) to $91.05 per barrel on the New York Mercantile Exchange.
Analysts noted that Brent had peaked at $126 per barrel during the height of the conflict in April, then fallen to around $71 at the start of July, before staging a sharp rebound due to renewed geopolitical risks. Crude has recorded its fastest monthly gain since disruptions to Gulf oil exports through the Strait of Hormuz earlier this year.
According to observers, the conflict has entered a more dangerous phase over the past 24 hours. The U.S. military continued airstrikes on Iran for the 12th consecutive night on Wednesday, while Tehran retaliated by targeting U.S.-linked military installations in Kuwait and Jordan. Goldman Sachs has cautioned that Brent could climb to as high as $120 per barrel by the end of the year if exports through the Strait of Hormuz are not restored.
