Brent Crude Surges Past $98 as Houthi Attacks on Red Sea Tankers Reignite Supply Fears

Global oil prices climbed above $98 a barrel on Thursday after Iran-backed Houthi militants struck Saudi tankers in the Red Sea, the latest escalation in a widening regional conflict that has reversed last month’s price decline. Secretary of State Marco Rubio, speaking in Manila, said Tehran remains unprepared to negotiate a new agreement.

Key Facts

Benchmark Brent crude futures rose to $98.45 per barrel on Thursday, up from roughly $90 at the start of the week, reaching their highest level in more than two months.

The surge erases the decline that followed an interim peace deal last month. U.S. benchmark West Texas Intermediate also breached $90 a barrel for the first time in over a month.

The price spike follows a drone and missile assault on two Saudi oil tankers transiting the Bab al-Mandab Strait, a critical chokepoint linking the Red Sea to the Indian Ocean.

The state-run Saudi Press Agency confirmed an attack on the tanker Encelia, reporting a fire at the vessel’s bow but stating all crew members are safe.

U.S. Gas Prices Climb

The national average for regular gasoline rose to $4.09 a gallon on Thursday, according to AAA, up from $3.94 a week earlier. Prices topped $4 a gallon on Monday for the first time in over a month. The increase adds political pressure on President Donald Trump, who has publicly criticized high fuel costs, accused oil companies of price gouging, and threatened to expand military action against Iran.

Diplomatic Stalemate

On the sidelines of the ASEAN foreign ministers’ summit in Manila, Rubio said Iran had been “begging us, both directly and indirectly” for a deal but did not appear “ready to make a deal” because leadership in Tehran “either break it or they want to change it.” Regarding the Houthi attacks, Rubio said he hoped they would cease, adding: “They shouldn’t really do that. They got suckered into this by the Iranians.”

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