Houthi strikes on Saudi tankers in the Bab el-Mandeb Strait push Brent above $100, threatening global supply chains and recession risks.
Brent crude surged past $100 per barrel after Yemen’s Houthis attacked two Saudi tankers in the Bab el-Mandeb Strait, compounding supply risks. The Red Sea route joins the Strait of Hormuz as a blocked chokepoint, reversing earlier expectations of an oil glut following a brief U.S.-Iran ceasefire.
Weeks ago, analysts predicted oversupply as tanker traffic resumed, but renewed hostilities have upended those forecasts. The dual disruptions now raise concerns over tightening global oil flows, with potential spillover effects on inflation and economic growth.
Markets reacted sharply to the escalation, with crude prices climbing amid fears of prolonged supply constraints. The attacks underscore vulnerabilities in key shipping lanes, heightening geopolitical risks for energy markets.