Brent Oil Reaches Three-Month High Amid Rising Tensions in the Red Sea
Crude oil prices surged back into triple digits on Thursday, driven by escalating tensions in the Middle East. Brent crude surpassed $100 per barrel for the first time since May, following claims by Yemen’s Houthi group of attacks on two Saudi oil tankers in the Red Sea. This development has raised concerns about potential disruptions to oil supplies, prompting a sharp increase in global oil prices.
As of 8 PM IST, Brent crude was trading at $100.79 per barrel, marking a 7% increase, while West Texas Intermediate (WTI) crude rose nearly 6% to $91.83 per barrel. The uptick in crude prices was mirrored in domestic markets, where crude futures climbed nearly 6% during Thursday’s session as traders monitored the situation in the Red Sea closely.
Domestic futures track global rally
The rise in international oil prices was reflected in the domestic market as well. Crude futures for August delivery on the Multi Commodity Exchange (MCX) increased by Rs 477, nearly 6%, reaching Rs 8,887 per barrel. Traders attributed this surge to renewed buying interest following the recent attacks in the Red Sea. Concerns over potential disruptions to energy exports from Gulf nations have driven this increased activity in crude contracts.
In overseas markets, Brent crude for September delivery gained $6.16, or nearly 7%, to $100.23 per barrel. This marked the first time Brent crossed the $100 threshold since May 15, 2026. WTI crude for September delivery also advanced, rising $4.22, or 5%, to $91.05 per barrel on the New York Mercantile Exchange (NYMEX).
Conflict continues to intensify
Analysts noted that Brent crude, which peaked at $126 per barrel during the height of the conflict in April, has rebounded sharply as geopolitical tensions have resurfaced. The recent escalation has led to the fastest monthly gain in crude prices since earlier disruptions to Gulf oil exports through the Strait of Hormuz. The conflict has entered a more dangerous phase, particularly following the Houthi attacks on Saudi oil tankers.
The Houthis have escalated their actions from merely threatening a blockade of Saudi Arabia to actively attacking oil tankers, raising significant concerns about the security of vital export routes. In a related development, the US military conducted airstrikes on Iran for the 12th consecutive night, while Iran retaliated by targeting US-linked military installations in Kuwait and Jordan. Goldman Sachs has projected that Brent crude could rise to as high as $120 per barrel by the end of the year if exports through the Strait of Hormuz are not restored.
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