Red Sea Attack on Saudi Tanker Lifts Oil Above $100 a Barrel

Oil prices jumped above $100 a barrel after a strike on the Saudi-owned tanker Encelia in the Red Sea, The New York Times reported. The incident occurred on July 23 and sparked a fire aboard the vessel. The Houthis claimed responsibility, saying two Saudi tankers—including Encelia—had breached a maritime blockade. Saudi state media confirmed the attack and said all crew members were safe. Brent crude, the global benchmark, climbed to its highest level in more than a month as traders priced in higher supply risks tied to a critical shipping corridor. Key Takeaways Market pricing suggests rising odds that oil could move toward a new all-time high, with prices reacting sharply to the incident. Trading activity indicates investors see Middle East geopolitical tension as a supportive backdrop for further oil price gains. Recent oil-market moves align with heightened supply-risk concerns, pushing up short-term price expectations. What to Watch Monitor developments in Middle East security that could reshape oil-market dynamics. Comments or actions from key policymakers—including OPEC's Mohammad Sanusi Barkindo and Saudi Energy Minister Abdulaziz bin Salman Al Saud—may signal potential shifts. Additional reports of strikes or disruptions in key shipping lanes could further influence expectations for oil to reach new highs by year-end. Get live prediction-market analysis, powered by Vera. Sign up for Vera.