Oil nears $100 as US strikes Iran for 12th night and Houthis attack Saudi tankers in Red Sea

US strikes Iran for 12th consecutive night

US Central Command announced that American forces struck military targets in Iran overnight from Wednesday to Thursday, marking the 12th straight night of attacks. The US-Iran war, which began on February 28, has seen nightly US strikes throughout July. The latest wave hit Iranian naval facilities, missile and drone storage sites, coastal reconnaissance centers, and air defense systems. CENTCOM said the operations "further reduced Iran's ability to attack civilian mariners and commercial ships." Kuwait's army also reported intercepting drones launched from Iran.

Houthis attack Saudi tankers, threaten Red Sea shipping

Iran-backed Houthi rebels claimed responsibility for attacking two Saudi tankers, Encelia and Layla, in the Red Sea on Thursday. Maritime security sources confirmed that Encelia sent a distress signal after being struck by a projectile near the Saudi port of Jizan, with a fire breaking out on board. No casualties were reported. The UK Maritime Trade Operations said the vessel was hit about 70 nautical miles southwest of Al Shuqaiq. The claim regarding Layla has not been independently verified. The Houthis had earlier declared a naval blockade of Saudi Arabia, threatening ports on the Red Sea. The EU military mission Aspides warned vessels linked to Israel, the US, and Saudi Arabia to avoid the area. Several tankers have already diverted: five took alternative routes to bypass the Bab al-Mandab strait, and three vessels carrying Saudi crude to China and India turned back. Four more tankers heading to Asia reversed course toward the Suez Canal instead of transiting the southern Red Sea.

Oil prices jump, analysts eye $100 Brent

Brent crude for September delivery rose 2.10% to $96.05 a barrel on ICE, while West Texas Intermediate gained 1.64% to $88.25 on NYMEX. The increases follow weeks of upward pressure from the US-Iran conflict and the new Red Sea threat. In the US, crude inventories rose by 2.01 million barrels last week to 411.67 million barrels, and gasoline and distillate fuel reserves also increased, the Department of Energy reported.

The durability of oil price increases may depend on whether the Red Sea attack proves to be an isolated incident or triggers prolonged supply chain disruptions. Oil bulls can already calmly target $100 per barrel for Brent.

Daniel Hynes, a senior commodity strategist, called the Houthi actions a serious escalation, warning that any disruption to Red Sea transit would deepen the strain on oil markets. HSBC analysts noted that the price rise reflects mounting fears over shipping safety through the Strait of Hormuz after the US-Iran ceasefire collapsed. The bank said the market's direction hinges on whether diplomacy can restore secure transport through the strategic waterway.

Trump threatens to destroy Iranian infrastructure

President Donald Trump escalated rhetoric on Tuesday, posting on Truth Social that for every Iranian attack on a ship in the Strait of Hormuz, the United States would bomb and destroy one bridge or power plant in Iran.

From this moment on, every time the Islamic Republic of Iran fires on a ship in the Strait of Hormuz, whether with missiles, rockets, a drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT.

An Iranian military source told the state-run Tasnim News Agency that if the US carries out such threats, Iran will strike infrastructure and bridges in the region, including energy facilities where American interests are at stake.

Two critical chokepoints under threat

Before the war, the Strait of Hormuz handled 20% of global oil consumption. With that passage blocked, Saudi Arabia had rerouted exports through Red Sea ports like Yanbu, which then transit the Bab al-Mandab strait. A blockade of Saudi Red Sea ports would halt another 7% of world oil flows, according to Reuters. The Houthi threat now endangers that alternative route. For the US military, simultaneously fighting Iran and the Houthis would pose a major logistical challenge, and for Trump a political complication, Reuters reported, citing experts and US officials. Saudi Arabia has not formally requested US military assistance.