On Thursday, global oil prices topped $100 a barrel for the first time since May. The rise in oil prices comes as a widening conflict in the Middle East heightens concerns about disruptions to global oil supplies. Brent crude, the global oil benchmark, rose more than 6%, briefly touching $100.14 a barrel before retreating slightly. West Texas Intermediate (WTI), the main U.S. oil benchmark, also rose nearly 5% to $90.98 a barrel.
U.S. crude rose for a second day in a row, rising more than 5% to nearly $92 a barrel. This is the highest level since June 11, according to NBC News. The recent rise in oil prices has been triggered by renewed tensions over Iran-backed Houthi rebels. The group claimed to have attacked two Saudi oil tankers in the Red Sea.
Why oil prices are rising
The Houthis earlier announced that they Saudi Arabia before claiming responsibility for the tanker attack. The attacks have raised concerns that the conflict is spreading beyond previous areas. NBC News said this appeared to be the first ship attack since the start of the war with Iran that extended beyond the area around the Strait of Hormuz.
The Red Sea has become an important route for Saudi oil exports. Saudi Arabia has been shipping about 4 million to 5 million barrels of oil through the Red Sea and Bab el-Mandeb Strait to avoid the Strait of Hormuz. Analysts say this Red Sea route has become an important backup force for global oil supply. According to CNN, the latest attack puts this important route at risk.
Why the Red Sea is important
The Houthis claimed to have attacked two Saudi oil tankers on Thursday. Their claims heightened concerns that oil exports could face further disruptions. The Bab el-Mandab Strait is one of the most important oil transportation routes in the world. Millions of barrels of oil pass through here every day on their way to global markets. About 12% to 15% of global maritime trade worth more than $1 trillion annually passes through the Bab el-Mandeb Strait.
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The Bab el-Mandab route has become an alternative to the Strait of Hormuz. Ship traffic through Hormuz has slowed sharply, with crossings falling to single digits on Tuesday, NBC News reported. Brent crude oil has risen by about $27 per barrel this month alone. That’s an increase of more than a third in just a few weeks.
How rising oil prices affect people
Brent crude oil last closed above $100 a barrel on May 22, according to FactSet data. According to NBC News, oil prices have risen about 35% since the beginning of this month. Oil prices are currently up more than 60% from the beginning of the year. Rising oil prices have also pushed up fuel prices for consumers.
average US gasoline prices It rose to $4.09 a gallon Thursday, up from $4.06 a gallon the day before. These numbers come from AAA data. Recent fuel price increases have erased much of the progress made since the United States and Iran signed a memorandum of understanding in mid-June. The US-Iran deal has now collapsed.
President Donald Trump warned on Wednesday that the United States would respond strongly to future ship attacks. “For every ship Tehran attacks, it blows up an Iranian bridge or power plant,” Trump said. Just hours after Trump’s warning, the Houthis claimed they had attacked two Saudi oil tankers in the Red Sea.
The UK Maritime Trade Office reported that an oil tanker was “hit by an unknown projectile” north of the Bab el-Mandeb Strait. According to NBC News, Saudi Arabia’s state-run news agency also reported that the oil tanker Enselia caught fire when it was attacked at night in the Red Sea. The Saudi report did not mention the second tanker, the Layla. Experts say rising oil prices are fueling concerns about inflation. Rising energy costs can make transportation, manufacturing and everyday items more expensive.
Rising oil prices spark inflation concerns
“Inflation remains at the top of the market agenda this morning,” said Jim Reid, Deutsche Bank’s head of global macro research, NBC News reported. He added, “In fact, attacks between the United States and Iran show no signs of easing, with the Houthis saying they attacked two oil tankers in the Red Sea yesterday, raising concerns that the conflict is widening.” As investors worry about inflation, us government Bond yields also moved higher.
Earlier Thursday, the U.S. 10-year Treasury yield reached 4.67%. NBC News said this is the highest level since January 2025. The 10-year Treasury yield is important because it affects borrowing costs across the economy, including home loans. The average U.S. 30-year mortgage rate rose to 6.77% on Wednesday. NBC News said this was the highest level since July 2025.
