Oil settles over $100 as Houthi attacks intensify Middle East supply risks
Oil prices rose above $100 for the first time since May after Yemen's Iran-backed Houthis opened a new front in the Iran war by targeting Saudi vessels in the Bab el-Mandeb Strait
Assessment
The Houthi targeting of Saudi vessels in the Bab el-Mandeb Strait directly threatens a critical chokepoint for global oil shipments, driving prices above the $100 threshold for the first time in months. This escalation widens the theater of conflict beyond Yemen's borders, pulling Saudi Arabia more directly into the confrontation. The immediate risk is sustained upward pressure on energy costs, which could ripple through economies still adjusting to prior volatility. Markets will closely watch whether the Houthis continue these strikes or if broader naval protection measures emerge.