Oil Nears $100 as Red Sea Attacks Open New Front in Iran War, Raising Fears of Global Energy Shock
By Saqib S. Qureshi | SCN NEWS
Global oil markets moved closer to the psychologically critical $100-per-barrel mark on Wednesday after Iran-backed Houthi forces claimed missile and drone attacks on two Saudi oil tankers in the Red Sea, threatening to turn the Bab el-Mandeb Strait into a second major maritime chokepoint alongside the already disrupted Strait of Hormuz.
The attacks significantly escalated fears of a wider regional conflict, with shipping companies reassessing routes and energy traders warning that prolonged disruptions could trigger another wave of global inflation.
A Second Chokepoint Emerges
For months, attention has focused on the Strait of Hormuz, one of the world's most important oil transit routes. Now, the Houthis have shifted pressure toward the Bab el-Mandeb Strait, the narrow gateway linking the Red Sea with the Gulf of Aden.
Roughly 12% of global trade passes through Bab el-Mandeb, making it one of the world's most strategic maritime corridors. If commercial traffic is disrupted in both Hormuz and Bab el-Mandeb simultaneously, global supply chains would face one of their biggest challenges in decades.
Oil Climbs Toward Triple Digits
Following the latest escalation:
- Brent crude climbed toward $99 per barrel.
- Energy analysts warned that sustained attacks could push prices above $100, a level not seen in years.
- Tanker insurance costs and shipping rates continue to surge as vessels divert around Africa instead of using the Red Sea.
Higher oil prices could translate into increased fuel, transportation, food and manufacturing costs worldwide.
Washington and Tehran Exchange Threats
The military escalation comes as Washington and Tehran continue trading increasingly sharp warnings.
US Secretary of State Marco Rubio defended President Donald Trump's approach toward Iran, describing it as "a head for an eye," signaling that any attack on American interests would trigger direct retaliation.
Meanwhile, President Trump has warned that additional Iranian attacks on maritime shipping could result in strikes against key Iranian infrastructure, including bridges and power facilities.
Why This Matters
Unlike previous regional crises, the current conflict now threatens multiple global energy arteries simultaneously.
If both Hormuz and Bab el-Mandeb remain under sustained threat:
- Oil exports from the Gulf become significantly more expensive.
- Global inflation could accelerate.
- Shipping delays may worsen worldwide supply-chain disruptions.
- Import-dependent economies across Asia, Europe and Africa could face higher energy bills.
Several Gulf producers are already accelerating alternative pipeline projects to bypass vulnerable sea routes, but analysts say those networks cannot immediately replace existing maritime capacity.
The Most Unique Fact
For the first time in the conflict, global energy markets are confronting the possibility that two of the world's most critical oil chokepoints—the Strait of Hormuz and the Bab el-Mandeb Strait—could be simultaneously threatened, dramatically increasing the risk of a worldwide energy shock.