Brent Settles Above $100 for First Time in Two Months as Trump Signals ‘Major Attack’

Brent crude settled above $100 a barrel for the first time in about two months as Middle East tensions escalated again.

ICE Futures Europe said July 23 Brent futures for September delivery settled at $100.69 a barrel, up 7.04% from the previous session. On the New York Mercantile Exchange, West Texas Intermediate futures for September delivery settled at $92.19 a barrel, up 6.17%. Both benchmarks rose for a fifth straight session.

Oil prices surged after reports that Saudi oil tankers had been attacked and after U.S. President Donald Trump said he was considering a large-scale military strike against Iran and Yemen’s Iran-backed Houthi rebels. The Houthis, which had previously declared a blockade of the Red Sea, said they attacked two Saudi tankers attempting to pass through the Bab el-Mandeb Strait, a key gateway to the waterway.

In a media interview, Trump said he was considering a “major attack” on Iran. “We are just before making a decision,” he said. “We are fully prepared.”

With military clashes between the U.S. and Iran effectively halting traffic through the Strait of Hormuz, concerns are growing that a closure of the Bab el-Mandeb Strait could severely disrupt shipments of Middle Eastern crude. Market estimates put oil flows through the two chokepoints at about 25% of global supply.

Goldman Sachs said in a report that Brent could top $120 a barrel in the fourth quarter if disruptions in the Bab el-Mandeb Strait persist and average $100 next year.

Park Su-rim, Hankyung.com reporter paksr365@hankyung.com