International benchmark oil prices cross $100 per barrel after Houthi attacks on Red Sea tankers

International benchmark oil prices have surged past $100 per barrel following Houthi attacks on tankers in the Red Sea, marking the first such strikes since a Saudi-linked shipping blockade via the Bab el-Mandeb strait. The attacks, which targeted vessels linked to Saudi Arabia, have raised fears of supply disruptions in a key global chokepoint for crude and refined products. The Bab el-Mandeb strait connects the Red Sea to the Gulf of Aden and handles about 10% of global seaborne oil trade. The Houthis, an Iran-backed group controlling parts of Yemen, have escalated maritime attacks amid the ongoing West Asia conflict. No casualties or major spills have been reported, but shipping companies are rerouting vessels, adding costs and delays. The price spike reflects immediate risk premium, with Brent crude crossing $100 for the first time since late 2023.

Global Impact

Economically, the $100+ oil price threatens to reignite global inflation, complicating central bank rate paths in the US, Europe, and emerging markets. Politically, the attacks escalate the West Asia conflict, drawing in Saudi Arabia and potentially prompting a stronger US naval response to secure shipping lanes.