Brent crude oil surged past $100 per barrel on July 23 as Middle East tensions escalated following Houthi rebel attacks on Saudi Arabian tankers in the Red Sea. The Iran-backed Yemeni group claimed responsibility for striking two Saudi oil tankers attempting to pass through the Bab el-Mandeb Strait, threatening a critical shipping route that handles approximately 7% of global oil supply. US President Donald Trump heightened concerns by stating that a large-scale attack is imminent and all preparations are complete, while holding Iran accountable for the Houthi actions. The price spike marks a 30% surge in three weeks from early-month lows near $71 per barrel. Rising oil prices have reignited global inflation concerns and pushed US Treasury yields to multi-month highs.
Houthi Rebels Claim Attacks on Two Saudi Tankers in Bab el-Mandeb Strait
Yemen's Houthi rebels claimed attacks on two Saudi Arabian oil tankers passing through the Bab el-Mandeb Strait in the Red Sea. The strait serves as an alternative export route for Saudi crude oil from the Yanbu port on the Red Sea coast, bypassing the Strait of Hormuz. A blockade of this waterway would significantly restrict Saudi oil export volumes and reduce global oil supply by approximately 7%.
Brent crude September delivery closed at $100.69 per barrel on the London ICE Futures Exchange on July 23, up 7.04% from the previous trading day. This marked the highest level since May 22. West Texas Intermediate (WTI) September futures on the New York Mercantile Exchange closed at $92.19 per barrel, up 6.17% from the previous session. Brent crude had fallen to around $71 per barrel earlier this month before surging more than 30% in approximately three weeks.
Trump Announces Military Readiness Against Iran
US President Donald Trump stated that a large-scale attack is imminent and all preparations are complete in response to the Houthi tanker attacks. Trump indicated he would hold Iran responsible for the actions of the Yemen-based group. The statement escalated concerns about potential supply disruptions in global oil markets.
Oil Price Surge Drives US Treasury Yields to January 2025 Highs
The sharp rise in international oil prices triggered renewed inflation concerns and pushed US Treasury yields higher. The 10-year US Treasury yield exceeded 4.7% intraday, reaching its highest level since January 2025. The 2-year Treasury yield, which is sensitive to monetary policy expectations, climbed to 4.37%.
FAQ
What caused Brent crude oil to surpass $100 per barrel on July 23?
Brent crude surged past $100 per barrel on July 23 following Houthi rebel claims of attacks on two Saudi Arabian oil tankers in the Bab el-Mandeb Strait. The attacks threatened a critical Red Sea shipping route that handles approximately 7% of global oil supply.
How much did oil prices increase in recent weeks?
Brent crude oil surged more than 30% in approximately three weeks, rising from around $71 per barrel earlier this month to $100.69 per barrel on July 23. WTI crude closed at $92.19 per barrel on the same day, up 6.17% from the previous trading session.
