Brent hits $100 as tanker attacks, Hormuz risks put crude traders on edge amid US-Iran tensions

Global crude oil markets extended their rally on July 23 as escalating tensions between the US and Iran, along with fresh disruptions around critical shipping routes, raised concerns over possible supply shortages. 

Brent crude futures crossed the $100-per-barrel mark for the first time since May 26, rising 7.4% to $101.04 a barrel by 11:11 a.m. ET.

US West Texas Intermediate (WTI) crude also climbed, gaining around 6.4% to $92.37 per barrel. Oil prices have jumped more than 30% this month as escalating conflict in the Middle East fuels concerns over potential disruptions to global energy supplies.

The latest surge came after attacks on oil tankers in the Red Sea by Yemen’s Houthi group and growing uncertainty around shipping through the Strait of Hormuz, one of the world’s most important energy transit routes. 

US President Donald Trump said Washington would hold Iran responsible for any future Houthi attacks on vessels in the Red Sea, warning of “major military punishment” against Tehran and the militants in Yemen.

Markets are closely watching developments involving US President Donald Trump and Iran as diplomatic efforts remain overshadowed by military tensions in the region. Traders fear that any prolonged disruption to energy flows could tighten global crude supplies and push prices higher. 

Experts said the current rally is being driven more by supply-route risks than by an immediate loss of crude production. However, a wider escalation affecting major chokepoints such as the Strait of Hormuz and the Red Sea could significantly alter the global oil outlook. 

Goldman Sachs has warned that Brent prices could move significantly higher if disruptions persist, with the firm highlighting the risk of a sharper spike if key shipping routes remain affected. 

The rise in crude prices has also renewed concerns over inflationary pressure, as higher energy costs could increase expenses across transportation, manufacturing and consumer sectors globally.