Tensions Surge: Oil Prices Break $100 Amid Global Supply Disruptions

Oil prices rose above $100 for the first time since May after Yemeni Houthis attacked Saudi oil tankers, disrupting supply in the Red Sea and Strait of Hormuz. Brent crude hit its highest close since May 22, while geopolitical tensions and possible OPEC+ output increases create market uncertainties.

Oil prices surged past the $100 mark on Thursday, the first such occurrence since May, following an assault by Yemen's Houthis on Saudi oil tankers in the Red Sea. This incident further exacerbates the ongoing global supply disruptions caused by a near-halt in trade through the strategic Strait of Hormuz.

The benchmark Brent crude futures ended the day up by $6.62, or 7%, settling at $100.69 per barrel, marking its highest close since May 22. Meanwhile, U.S. West Texas Intermediate crude rose by $5.36, or 6.2%, reaching a settlement price of $92.19 per barrel, the highest since June 4.

The attack on Saudi vessels in the Bab el-Mandeb Strait has opened a new front in the ongoing conflict with Iran, significantly impacting global oil flows. Analysts warn that further disruptions in the Strait of Hormuz, a critical passageway for a significant share of the world's oil supply, could propel crude prices even higher.