Brent US$100, Energy Market on Red Alert
Oil prices surged sharply in trading on Thursday (July 23rd) after Brent broke through US$100 per barrel for the first time since May 26th. This increase was triggered by an attack by Iran-backed Houthis on two Saudi Arabian oil tankers in the Red Sea.
The September Brent contract rose 6.3% to US$100.06 per barrel, while West Texas Intermediate (WTI) strengthened 4.8% to US$90.95 per barrel. This surge indicates the market is beginning to factor in the significant risks to global energy supply.
The Houthis attributed the attacks to two Saudi tankers violating a newly announced maritime blockade. This threat raises concerns that the Bab el-Mandeb oil route, which connects the Red Sea and the Gulf of Aden, could be disrupted for longer.
If the disruption continues, oil tankers could potentially be forced to detour through southern Africa. The longer route could raise shipping costs, increase insurance premiums, and slow the flow of oil supplies to major buyers such as India and China.
Tensions also escalated in the Strait of Hormuz after the US launched its 12th nighttime attack on Iran. Tehran declared control of the waterway and warned that tankers should not pass through without coordination. This situation has placed two important global oil routes, the Hormuz and Bab el-Mandeb, both in high-risk zones.
As a result, oil prices remain strong as long as the risks of tanker attacks, shipping lane closures, and the US-Iran conflict remain. However, US inventory data, which rose by 2 million barrels, could act as a buffer against gains if the market begins to take profits. As long as Brent remains above US$98, the bias remains bullish, with the next target in the US$102–US$105 per barrel area. (arl)
Source: Newsmaker.id
