Trump pledges response after Houthi strikes hit Saudi tankers

Highlights

The U.S. increased pressure on Iran after attacks on Saudi oil tankers.
Houthi strikes expanded security risks in the Red Sea.
Brent crude climbed above $100 for the first time since May 2026.
Shipping costs and insurance premiums rose as vessels rerouted.

According to Reuters, Washington blamed Iran and its Houthi allies for the attacks after the Yemen-based group said it had targeted the vessels as part of a naval blockade. The escalation pushed Brent crude above $100 per barrel for the first time since May 2026, while shipping companies and insurers reassessed risks across the Red Sea and the Persian Gulf.

Conflict expands to another strategic waterway

The attacks mark a significant shift in the regional conflict, which had already disrupted traffic through the Strait of Hormuz. The Bab el-Mandeb Strait, linking the Red Sea with the Gulf of Aden, has become increasingly important for oil exports as producers sought alternative routes to avoid the Gulf.

Following the latest incidents, several tankers altered their routes to reduce exposure to the southern Red Sea. Marine insurance premiums for some voyages through the area doubled, reflecting growing concerns that commercial shipping could face prolonged disruption. Ship-tracking data also showed tanker traffic through the Strait of Hormuz falling to its lowest level since early May.

Military activity continued across the region overnight. The United States carried out another round of airstrikes inside Iran, while Tehran reported missile attacks targeting U.S.-linked facilities in neighboring countries. The latest exchanges underscored the risk that the conflict could spread beyond maritime infrastructure.

Oil markets and global trade feel the impact

Energy markets reacted immediately to the deteriorating security environment. Brent crude rose more than 6%, briefly trading above $100 per barrel, a level not seen in nearly two months. Traders increasingly priced in the possibility of supply interruptions affecting two of the world's most important energy corridors simultaneously.

The rise in oil prices has also renewed concerns about inflation. Higher fuel costs could increase transportation and manufacturing expenses worldwide, complicating monetary policy decisions for major central banks that have only recently begun to slow inflation.

At the same time, uncertainty over shipping routes has increased costs for cargo operators, raising the prospect of longer delivery times and higher freight rates if vessels continue avoiding the Red Sea.

Energy routes become the center of the crisis

The latest escalation highlights how quickly regional conflict can disrupt global trade. Pressure is no longer limited to the Strait of Hormuz, with the Bab el-Mandeb now emerging as another vulnerable chokepoint. As long as security risks remain elevated across both routes, energy markets are likely to stay volatile and global supply chains could face additional strain.

As we previously reported, oil prices climb as Houthi strikes threaten Red Sea shipping.

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