Red Sea Tanker Attack, Hormuz Strait Risks Rise! Brent Crude Surges Past $100

Middle East energy transport risks have risen again, with Brent crude futures breaking the $100 per barrel mark on Thursday (23rd), the first time since May 26. Yemen's Houthi rebel movement claimed attacks on two Saudi oil tankers in the Red Sea, and mutual threats between the U.S. and Iran to strike each other's energy infrastructure have heightened market concerns over potential oil supply disruptions.

July-delivery Brent crude futures in London briefly rose to $100 per barrel, with a projected monthly gain of 35.3% for July—potentially the third-largest monthly increase in the past decade. West Texas Intermediate (WTI) crude futures surged over 5% to $91.40 per barrel, the highest since June 11, with a monthly gain of around 30%, also possibly marking the third-largest monthly rise in 10 years.

At the time of writing, Brent crude futures were up 6.17% at $99.87 per barrel, while WTI crude futures rose 5.22% to $91.36 per barrel.

The UK Maritime Trade Organisation (UKMTO) reported that an oil tanker was attacked approximately 70 nautical miles southwest of Saudi Arabia's Shuqaiq port. The attack sparked a fire onboard, with crew members attempting to extinguish it. No casualties have been reported so far.

The Houthi movement claimed it used drones and missiles to attack two Saudi oil tankers, alleging the vessels violated the group's maritime blockade of Saudi Arabia. However, the attacks have not yet been independently verified. If confirmed, this would be the first attack since the Houthis announced their blockade.

The Red Sea incident opens a new front in the Middle East conflict. With U.S.-Iran tensions escalating, shipping through the Strait of Hormuz has already been disrupted. The Bab el-Mandeb Strait at the southern end of the Red Sea has become a critical alternative route for oil exports during wartime. Now, both key shipping lanes face security threats, amplifying energy supply risks.

Hours before the tanker attack, U.S. President Trump warned that for every ship Iran attacks in the Strait of Hormuz, the U.S. military would destroy an Iranian bridge or power plant. Iran responded that if the U.S. attacks Iranian infrastructure, Tehran will retaliate against U.S.-linked infrastructure, bridges, and energy facilities in the region.

HSBC noted that the recent oil price surge reflects renewed market anxiety over Hormuz Strait shipping. As both the U.S. and Iran downplay the possibility of resuming peace talks soon, the conflict may persist, and future oil price movements will depend on whether diplomatic efforts can restore predictable oil transportation.