Oil prices reached $100 per barrel today for the first time since May, as Houthi attacks in the Red Sea heightened concerns over further constraints on global supply and the risk of a new inflationary shock around the world. Earlier, Donald Trump warned Iran that any future Houthi attacks on ships would be considered Tehran’s responsibility.
Shortly after 4:00 p.m., Brent crude rose by more than 6%, touching $100 per barrel and extending its strong rally this month. Meanwhile, WTI crude jumped 5.29% to $91.34 per barrel.
The surge accelerated after the Houthis announced that they had attacked two Saudi oil tankers in the Red Sea, following their decision this week to impose a naval blockade on Saudi Arabia. The attacks have revived concerns that the Houthis may attempt to close the Bab el-Mandeb Strait, which links the Red Sea with the Gulf of Aden and the Indian Ocean.
This maritime route has become critically important for Saudi Arabia’s oil exports since Iran took control of the Strait of Hormuz during the early days of the conflict. The attacks also threaten to undermine the four-year ceasefire between the Houthis and Saudi Arabia.
Brent last traded at the $100 level on May 26, but prices fell sharply in June after Washington and Tehran agreed to extend a ceasefire and reopen the Strait of Hormuz, raising hopes that oil flows through the route would quickly normalize.
Bond markets under pressure
The sharp rise in oil prices triggered a fresh wave of selling in the bond market and weighed on US equity futures.
The yield on the 10-year US Treasury note climbed to its highest intraday level since January 2025. During early US trading hours, the yield reached 4.711%, according to Tradeweb data, surpassing the previous 2026 high of 4.687%, recorded in May.
Bond yields have been trending higher since the collapse of the US-Iran ceasefire at the end of June, as investors fear that rising energy prices could force the Federal Reserve to raise interest rates again in the coming months.
The Houthi attacks on Saudi vessels added further pressure to bond markets, reinforcing concerns over inflation and global energy security.
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