Brent crude prices reached $100 per barrel following Houthi rebel attacks in the Red Sea, threatening critical oil export routes already strained by the closure of the Strait of Hormuz.

Brent crude oil prices climbed above $100 per barrel on July 24, marking a significant increase from recent lows as conflict in the Gulf region intensifies. The surge follows Houthi rebel attacks on Saudi oil tankers in the Red Sea, a route previously used to bypass the closed Strait of Hormuz. Meanwhile, the United States conducted its 12th night of strikes against Iranian missile and drone facilities.

Impact on Global Export Routes

The Red Sea has served as a vital alternative for Saudi Arabia and the United Arab Emirates to export oil via pipelines. According to Rystad Energy, approximately 6.8 million barrels of crude oil per day were exported through this route, with 2.5 million barrels passing through the vulnerable Bab el-Mandeb strait. Analysts warn that if both the Strait of Hormuz and the Red Sea become inaccessible, global energy markets could face a significant price rebound.

Economic Consequences and Market Outlook

Rising oil prices are impacting consumer costs globally, with US gas prices reaching an average of $4.09 and fuel prices in Germany climbing to nearly €2.15 per liter for gasoline. Shipping companies face increased operational costs, with rerouting via southern Africa adding up to four weeks to voyages and over $1 million in fuel expenses per trip. Additionally, the depletion of strategic oil reserves and potential US export curbs are creating further pressure on global supply chains.