Oil Jumps Past $100 For First Time Since May As Houthi Red Sea Attacks Rattle Markets

Brent crude oil surged past $100 per barrel for the first time since May, rising $6.64 (7%) to $100.71, driven by escalating Houthi attacks on commercial shipping in the Red Sea. The attacks have disrupted a key global trade route, forcing tankers to take longer, more expensive routes around Africa. This supply disruption fear has reignited inflationary pressures in global energy markets. The Houthi group, based in Yemen, has intensified its campaign against vessels it claims are linked to Israel, in solidarity with Palestinians in Gaza. The price spike marks a significant escalation in the geopolitical risk premium embedded in oil prices.

Global Impact

Economically, the oil price surge will increase input costs for manufacturers and transport, potentially slowing global growth and complicating central bank inflation fights. Geopolitically, the Houthi attacks risk drawing in naval forces from the US, UK, and others, expanding the conflict's scope.