Brent crude tops $100 after Houthi attacks widen Red Sea conflict

Brent crude traded above $100 a barrel for the first time in two months, with futures up about 14% this week. West Texas Intermediate traded near $92. The move followed Houthi attacks on tankers in the Red Sea. President Donald Trump threatened to extend US strikes on Iran.

Trump threatened "major military punishment" for both Iran and the Houthis if further attacks on vessels occurred. He told Axios he is considering a "massive attack" on Iran. The threats came after the Houthis, an Iran-backed group, struck Saudi Arabian tankers in the Red Sea, raising concerns about broader supply disruptions.

"If Red Sea traffic is minimal, then we would forecast $120, kind of the inflection point for oil," said Jay Hatfield, chief executive officer at Infrastructure Capital Management LLC. "If there's no transportation, then you need conservation. The way you get conservation is higher prices."

The Red Sea has become a crucial alternative export route for Saudi Arabia, allowing the kingdom to bypass the Strait of Hormuz. Some Asian buyers are now in talks with state-run Saudi Aramco to potentially divert flows through the Suez Canal and around Africa after the Houthi attacks, according to traders.

The market is also contending with attacks at the Caspian Pipeline Consortium terminal on Russia's Black Sea coast, which exports most of Kazakhstan's oil. Global inventories have been depleted by months of conflict in the Middle East, raising the risk of a supply crunch and a broader economic shock.