Brent Crude Hits US$100 as Houthi Attacks Disrupt Red Sea
Markets
Key Facts
—The level. Brent crude rose above US$100 a barrel, its first time since May, up about 40% this month.
—The trigger. Houthi missile and drone attacks on Saudi oil tankers in the Red Sea, enforcing a declared blockade of Saudi ports.
—The wider risk. Shipping through the Strait of Hormuz has slowed sharply, deepening supply fears.
—The politics. The US said it would hold Iran responsible for further attacks; Iran warned it would retaliate.
—The forecast. Analysts see room for more gains; Goldman Sachs projects Brent above US$120 by the fourth quarter if disruptions persist.
Oil is back in triple digits. Brent crude topped US$100 a barrel for the first time since May after attacks on shipping in the Red Sea, a jump with real consequences for Latin America’s oil exporters and importers alike.
After months in the doldrums, oil prices have surged. Brent crude climbed past US$100 a barrel, a level not seen since May, capping a rally of roughly 40% in July.
The spark was violence at sea.
What Happened
Yemen’s Houthis fired missiles and drones at Saudi oil tankers in the Red Sea to enforce a blockade of Saudi ports, with at least one tanker attacked and several diverting course.
The trouble compounded a near-halt in shipping through the Strait of Hormuz, the chokepoint for a large share of the world’s oil, sending traders scrambling to price in the risk.
The Escalation Risk
President Donald Trump said the United States would hold Iran responsible for further Houthi attacks and warned of strikes on Iranian infrastructure; Iran said it would retaliate against US-linked assets in the region.
Analysts warn prices could rise further if the conflict widens, with Goldman Sachs projecting Brent above US$120 a barrel by the fourth quarter should supply disruptions continue.
Live Market IntelligenceCommodities — Live Market Board
Rio Times · Live Market Intelligence
Commodities — Live Market Board
-0.03%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
What It Means for Latin America
For the region’s oil exporters, higher prices are a windfall. Brazil, Guyana, Colombia, Ecuador and Venezuela all earn more for every barrel they sell abroad.
For importers, the math runs the other way: pricier crude feeds into fuel and freight costs across Central America, the Caribbean and beyond, adding to inflation pressures.
Why It Matters
Oil at US$100 reshapes trade balances and budgets across Latin America in opposite directions, rewarding producers and squeezing consumers.
How long the spike lasts will depend less on the region than on what happens next in the Red Sea and the Gulf.
Why This Spike Is Different
The jump past US$100 did not come from a single shock alone. Brent had already been climbing from around US$78 earlier in July, before the Houthis targeted two Saudi tankers on 23 July.
That attack landed amid the US military’s twelfth consecutive night of strikes on Iran. The combined pressure turned a steady rally into a sudden breach of the triple-digit mark.
The Shipping Bottleneck and What Comes Next
War-risk insurance costs doubled for some shipments through the southern Red Sea after the attacks. A successful blockade of the Bab el-Mandeb strait would force tankers onto far longer routes around Africa.
Analysts warn that such a disruption could push crude back above US$115. For now, traders are watching to see whether commercial traffic can resume safely through the Red Sea corridor.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
Why did Brent crude rise above US$100?
Prices jumped after Houthi missile and drone attacks on Saudi oil tankers in the Red Sea, compounded by a sharp slowdown in shipping through the Strait of Hormuz, raising fears over global oil supply.
How high could oil go?
Analysts say prices could climb further if the conflict continues. Goldman Sachs projects Brent above US$120 a barrel by the fourth quarter if supply disruptions persist.
How does US$100 oil affect Latin America?
It benefits exporters like Brazil, Guyana, Colombia, Ecuador and Venezuela, which earn more per barrel, while raising fuel and freight costs for importers across Central America and the Caribbean.
Sources
- The National – Oil hits $100 for the first time since May after Houthi attacks on Saudi ships
- OilPrice – Brent Tops $100 as Houthi Attacks Push Oil Rally Into Triple Digits
Connected Coverage
- Spain’s Repsol Bets on Venezuela Oil, Parks $5.4Bn Debt
- Batista Brothers Expand Venezuela Oil Bet With PDVSA Stake
- Brent Punches $111 After Trump Aims Arrows at Tehran on Truth Social
Sources: Goldman Sachs.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times