Houthi Attack on Saudi Oil Tanker Sends Brent Crude Surging to $95
Miles Bennett
Houthi forces on Wednesday fired missiles and drones at two Saudi oil tankers, sending Brent crude to near $95 a barrel in after-hours trading — the Red Sea, Saudi Arabia's last workaround for the Hormuz chokepoint, is now itself under fire.
What happened?
The Houthis targeted the tankers Encelia and Layla, citing violations of their Red Sea blockade.
The UK Maritime Trade Operations (UKMTO) reported a vessel struck by an unidentified projectile roughly 70 miles southwest of Saudi Arabia's Shuqaiq port; a fire broke out on board. UKMTO did not name the ship.
This is the first known tanker attack in the Red Sea since the US–Iran conflict escalated in late February.
How far did oil prices jump?
Brent surged to near $95 a barrel after hours, settling at $94.07 — up 3.4% on the day.
WTI rose as much as 1.3%, breaching $87 a barrel; it traded at $87.71 in Singapore's morning session, up about 1%.
This means → the market is now pricing in "the Red Sea route is unsafe too," not just Hormuz risk.
Why was Saudi Arabia shipping through the Red Sea?
The Strait of Hormuz — the Persian Gulf's exit, carrying roughly a fifth of global crude — has been tightening under US–Iran confrontation, forcing Saudi Arabia to find an alternative export corridor.
Saudi Red Sea port shipments had risen to record levels before the Houthis announced their blockade.
In plain terms = Hormuz was choked, so Riyadh rerouted through the Red Sea. Now the Red Sea is under attack too — both routes are narrowing at once.
How far has the Houthi blockade escalated?
The Houthis recently declared an embargo on the Bab el-Mandeb strait — the Red Sea's southern exit into the Gulf of Aden — barring any vessel that has called at a Saudi port.
Wednesday's actual strike on tankers marks the shift from declaration to action.
This reflects a deeper problem: the Red Sea crisis is no longer about shipping detours — the detour itself is being sealed off.
Will oil break $100?
Hormuz and Bab el-Mandeb — the world's two critical energy chokepoints — are tightening simultaneously, compressing the global crude supply chain's room to reroute.
Whether the market's expectations of a $100-a-barrel breakout materialize depends on further Red Sea escalation.
This means → the key variable is no longer just US–Iran diplomacy; it is whether the Houthis strike again — and at whom.
Content is for reference only, not financial advice.