Houthi Attacks on 2 Saudi Tankers Lift Brent Above $94 as Red Sea Escape Route Comes Under Threat
Updated
Updated · CNBC · Jul 23
Houthi Attacks on 2 Saudi Tankers Lift Brent Above $94 as Red Sea Escape Route Comes Under Threat
3 articles · Updated · CNBC · Jul 23
Summary
Two Saudi oil tankers came under Houthi missile and drone attack in the Red Sea, with Encelia hit and set ablaze near Jizan, extending the shipping threat beyond Hormuz.
Bab al-Mandeb matters because Saudi Arabia has rerouted millions of barrels a day through a Red Sea pipeline terminal since Hormuz disruptions, making this corridor a key relief valve for global supply.
Brent settled at $94.07 a barrel, up more than 3%, while WTI closed at $86.83 after the attacks raised the risk that both major regional oil chokepoints could be impaired.
The strike landed as Trump threatened to bomb Iranian bridges and power plants over attacks on shipping, and Iran warned it would hit U.S.-linked infrastructure and energy facilities if Washington followed through.
With military strikes failing, what new strategy can secure vital shipping lanes from determined rebel groups?
How will the global economy adapt as attacks expand from oil tankers to the internet's undersea cables?
Houthi Naval Blockade Threatens Global Oil Markets and Red Sea Shipping: July 2026 Escalation
Overview
On July 21, 2026, the Houthis threatened a naval blockade in the Red Sea, specifically targeting Saudi shipping. This immediately escalated regional tensions and caused volatility in the global oil market. The Bab al-Mandab Strait, a narrow but vital waterway for much of the world’s oil and gas shipments, is at the center of this crisis. Any disruption here poses a direct threat to global energy security and trade flows. If the blockade continues, shipping companies may be forced to use longer, more expensive routes, increasing costs and impacting international trade and energy markets.