Oil prices climb as Houthi strikes threaten Red Sea shipping

Highlights

Brent rose to $96, while WTI reached $88.
Houthis claimed attacks on two Saudi tankers.
The Red Sea has become vital for Saudi crude exports.
Wider conflict could push shipping and insurance costs higher.

Brent crude rose to $96.09 a barrel, up 0.63%, while WTI climbed to $88.14, gaining 1.93%. The rally followed reports that a tanker southwest of Al Shuqaiq, Saudi Arabia, had been struck. Yemen's Iran-backed Houthi movement later claimed responsibility for attacks on two Saudi oil tankers in the Red Sea, Bloomberg reported.

Red Sea attack adds pressure to oil markets

The United Kingdom Maritime Trade Operations said the master of a tanker reported being hit by an unidentified projectile about 70 miles southwest of Al Shuqaiq. Saudi Arabia did not immediately comment on the incident.

The attack appears to be the first known strike on tankers transiting the Red Sea since the U.S.-Iran conflict escalated in late February. The Houthis have recently threatened to block Saudi exports through the Bab el-Mandeb Strait, increasing concerns that disruptions could spread beyond the Strait of Hormuz.

The Red Sea has become an increasingly important export route for Saudi crude after shipping through the Strait of Hormuz faced repeated disruptions. Any threat to vessels using the corridor immediately raises concerns about supply risks and higher transportation costs.

Wider conflict clouds market outlook

The tanker attack came as the U.S. carried out a twelfth consecutive night of strikes against Iranian military targets, including missile storage facilities, coastal surveillance systems, and air defense assets. The White House has indicated that military operations will continue until Iran stops targeting commercial shipping and reopens the Strait of Hormuz.

At the same time, there has been little sign of renewed diplomacy. President Donald Trump said Iran was not ready to negotiate, while Iranian officials said discussions remained limited to indirect exchanges of messages. Tehran also warned it would respond if the U.S. targeted additional infrastructure inside Iran.

Shipping security takes center stage

The latest attack underscores how quickly geopolitical events can influence energy markets. With both the Strait of Hormuz and the Red Sea under pressure, traders are increasingly pricing in the possibility of supply disruptions rather than actual production losses.

If attacks on commercial shipping continue, freight costs, insurance premiums, and crude prices could move even higher. For oil-importing economies, that would add inflationary pressure at a time when many central banks are still trying to stabilize prices.

As we previously reported, the U.S.-Iran conflict widens as Hormuz shipping traffic falls.

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