July 23 - Brent crude briefly reached $100 per barrel on Thursday, extending a five-day advance after attacks on two Saudi oil tankers intensified geopolitical tensions in the Middle East and raised concerns about disruptions to global oil supplies. The moves in oil prices coincided with premarket gains across U.S. energy stocks.
Houthi forces in Yemen widened their operations by targeting vessels carrying Saudi oil through the Bab el-Mandeb strait, after announcing a naval blockade on Saudi shipments. Market observers said the incident increased fears that disruptions could extend beyond the Strait of Hormuz, tightening available crude supplies.
By 1302 GMT, Brent futures had jumped as much as 6.3% to $100 per barrel, marking the first time the benchmark traded at that level since May 26. U.S. West Texas Intermediate crude rose 5.2% to $91.30 per barrel.
UBS analyst Giovanni Staunovo commented on the prospects for supply normalization, saying: "We continue to expect the production recovery process in the Middle East to be slower than the market anticipates, as it requires an increase in inbound vessels." He added: "With the conflict resuming, those flows remain depressed. This should keep the oil market tight and prices supported."
In equities, major integrated oil companies and several exploration and production names advanced in premarket trading. Shares of Exxon Mobil and Chevron rose 1.6% and 1.7%, respectively. Diamondback Energy, Devon Energy, ConocoPhillips and Occidental Petroleum each increased between 2% and 2.5%.
Refining companies also saw gains ahead of the market open. Valero Energy, Marathon Petroleum and Phillips 66 climbed between 2.1% and 2.6%.
Analysts had lowered 2026 oil-price forecasts earlier in June, before tensions flared again after July 8, according to a Reuters poll conducted that month. The same reporting noted that energy stocks have reacted to developments in the conflict, surging when supply-disruption risks rose and retreating after the United States and Iran reached a temporary peace agreement.
The recent attacks and the resulting market moves underscore how developments in shipping lanes and regional conflict dynamics have immediate effects on crude pricing and the stocks of companies tied to oil production and refining. Market participants and analysts continue to monitor vessel flows and security conditions that influence inbound tanker movements to Middle East export facilities.
Key points
- Brent crude rose as much as 6.3% to $100 per barrel by 1302 GMT; U.S. WTI increased 5.2% to $91.30 per barrel.
- U.S. integrated oil producers and exploration companies posted premarket gains; major refiners also advanced.
- Analysts expect a slower production recovery in the Middle East because restoring flows depends on an increase in inbound vessels, a process that remains depressed while the conflict resumes.
Risks and uncertainties
- Escalation of attacks on tankers could further depress vessel inflows to Middle East export terminals, maintaining tightness in the oil market - impacting crude prices and energy equities.
- Supply disruption fears remain elevated as hostilities broaden to shipping lanes beyond the Strait of Hormuz, creating uncertainty for global crude availability and downstream refining margins.