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Oil Tops $100 as Middle East Strikes and Houthi Attacks Cripple Shipping Lanes

Renewed U.S.–Iran strikes and Iran‑aligned Houthi attacks have forced route changes, halted Black Sea loading and sent buyers to Russian crude, raising supply risk and transport costs.

Overview

  • Global Brent crude has climbed above $100 per barrel as markets price higher risk from renewed U.S.–Iran hostilities and Houthi maritime attacks on Red Sea routes.
  • Houthi strikes and threats around the Bab‑el‑Mandeb and attacks linked to the Iran conflict have sharply reduced tanker transits through the Strait of Hormuz and the southern Red Sea, according to ship‑tracking data.
  • Kazakhstan’s energy ministry said it temporarily cut oil production and the Caspian Pipeline Consortium suspended loading at its Novorossiysk Black Sea terminal after nearby tanker drone attacks, trimming seaborne exports.
  • Traders and refiners are rerouting cargoes via the Suez Canal, insurers and freight rates are rising, and some Chinese refiners have increased purchases of discounted Russian ESPO crude to replace at‑risk Middle East supplies.
  • The disruption shortens export capacity, raises delivery times and costs for consumers and businesses, and could keep oil volatility high until shipping through the Hormuz and Bab‑el‑Mandeb corridors is secure.