Brent Cracks $95 as Houthis Red Sea Blockade Sends Oil Bulls Into Overdrive 🚢

Brent crude rose above $95 to a five-week high after Iran-backed Houthi forces imposed a naval blockade on Saudi Arabia and warned of strikes on ships carrying Saudi crude through the Bab el-Mandeb strait. The escalation adds a fresh flashpoint to global energy markets, on top of mounting tensions around the Strait of Hormuz.

Shipping effects are already visible. Three tankers carrying Saudi crude bound for China and India turned around in the Red Sea on Tuesday rather than continue along Yemen's coast. Asian refiners are now looking to load cargoes from Saudi Arabia's Yanbu terminal via the Suez Canal and around the African continent to avoid the Houthi-controlled waters.

The EU's naval mission Aspides has warned that vessels linked to Israel, the United States, or Saudi Arabia face heightened risk of Houthi attacks and has advised operators against transiting the Red Sea and the Gulf of Aden. The blockade announcement comes against a backdrop of escalating U.S.–Iran hostilities, with the U.S. military confirming strikes against Iran for the 11th consecutive night.

Regional tensions intensified further after Kuwait's army reported intercepting Iranian drones using its air defenses. The combination of the Saudi blockade, sustained U.S. strikes, and the Kuwaiti intercepts has placed additional upward pressure on crude, with the five-week high in Brent underscoring market concerns over supply disruptions through key Middle East shipping lanes.