Brent Crude Tops $100 a Barrel for First Time Since July as US-Iran War Escalates and Houthis Strike Saudi Energy Sites

Brent crude oil crossed $100 a barrel on Wednesday for the first time since July, rising roughly 3% as a sharp escalation in U.S.-Iran fighting and Houthi attacks on Saudi Arabian energy infrastructure deepened fears of major supply disruptions across the Gulf region.

The trigger was a series of tit-for-tat strikes. The U.S. military destroyed five Iranian tankers after Iran attempted to hit a U.S. Navy warship, and Iran subsequently fired missiles into Jordan and attacked ships in the region. Separately, Iran-backed Houthi militants launched strikes on multiple Saudi cities and energy facilities, wounding more than 70 people and forcing the Saudi energy ministry to halt operations at certain sites.

The twin threats reinforce fears about two critical chokepoints. Shipping through the Strait of Hormuz, which handled roughly 20% of global crude flows before the conflict, has remained severely constrained, and the new Houthi activity threatens the Red Sea route that markets had been counting on as an alternative. Goldman Sachs warned that intensifying shipping attacks are raising the probability of Brent exceeding $120 a barrel. The bank had already lifted its December 2026 forecasts for Brent and WTI by $5, to $85 and $80 per barrel respectively, before Wednesday's move blew past those levels.