Oil markets experienced a sharp rally on Thursday, with Brent crude briefly hitting the $100 mark for the first time in months. This surge follows a dangerous escalation in the Red Sea, where Houthi militants claimed responsibility for attacks on Saudi Arabian oil tankers. The incident has intensified fears regarding the security of global energy transit, particularly as these attacks occur alongside ongoing instability in the Strait of Hormuz. Market analysts are increasingly concerned that the dual threat to these critical maritime chokepoints could lead to prolonged supply chain disruptions, keeping upward pressure on prices.

Financial institutions, including Goldman Sachs, have warned that prices could climb significantly higher if these trade routes remain compromised. The situation is further complicated by rising geopolitical tensions between Iran and the United States, as Iran’s Revolutionary Guards have asserted control over the Strait of Hormuz. With global inventories already tightening due to lower production levels and strong seasonal demand, the combination of regional conflict and reduced fuel exports from Russia—driven by recent refinery attacks—has left the energy market in a precarious state. Experts anticipate that the current price gains are likely to hold throughout the summer as the world grapples with this volatile supply outlook.