Oil prices rise above $100 per barrel amid Middle East tensions

Oil prices climbed for a fifth consecutive session on Tuesday after the Yemen‑based Houthi movement announced it had struck two Saudi‑flagged oil tankers transiting the Red Sea. Brent crude futures edged higher, while U.S. West Texas Intermediate also posted gains, reflecting market concerns that the attacks could disrupt a key maritime corridor for global energy shipments. Traders cited the Houthis’ claim of targeting the vessels, which the group says are part of a campaign against nations it accuses of supporting the Saudi-led coalition in Yemen, as a fresh source of supply risk that outweighed recent easing of geopolitical tensions elsewhere.

Analysts noted that the Red Sea remains a chokepoint for oil exports from the Gulf, and any interruption could tighten global markets already coping with tighter inventories and variable demand. While the Saudi Ministry of Energy confirmed the incidents but reported no damage to the cargoes, the uncertainty has prompted shipping firms to reroute vessels around the Cape of Good Hope, increasing transit times and costs. The price uptick underscores the market’s sensitivity to security developments in the region, even as OPEC+ members maintain their production stance, leaving the broader outlook for crude prices dependent on the evolution of the Red Sea threat.