Oil prices jumped more than 6 percent on Thursday, breaching $100 per barrel for the first time in two months, according to Ship & Bunker. The spike followed escalating hostilities between the United States and Iran, which have now expanded to include attacks by Yemen’s Houthi militia targeting Saudi Arabian oil exports through the Red Sea.
Tankers Struck in Red Sea
According to Ship & Bunker, the Iran-backed Houthis claimed responsibility for attacks on two Saudi Arabian oil tankers, the Encelia and Layla, using a combination of ballistic and cruise missiles as well as drones. The report states that one of the vessels caught fire as a result of the strikes.
Trump Threatens Iran
Ship & Bunker reports that U.S. President Donald Trump promised “major military punishment” against Tehran and Yemeni militants should further attacks occur in the Red Sea. Trump also told media he was “considering a massive attack” against Iran, describing it as “bigger than ever before” and stating, “I am close to making a decision: we are all set for it.”
Analysts Warn of Further Price Increases
Susannah Streeter, chief investment strategist at Wealth Club, told Ship & Bunker that “with both the Strait of Hormuz and the Red Sea now under increasing pressure, markets are bracing for the possibility that the conflict could disrupt key energy routes [and] keep oil prices elevated.”
Goldman Sachs analysts, as cited by Ship & Bunker, said oil prices would likely hold onto most of their recent gains through July and August, citing declining global inventories, reduced Middle East production, summer travel demand, and a slowdown in strategic petroleum reserve releases.
Helima Croft, global head of commodity strategy at RBC Capital Markets, said Brent crude could even surpass its 2008 peak of $146 per barrel if the conflict escalates into a full-scale regional war, according to Ship & Bunker. Croft also pointed to pressure from the Russia/Ukraine war, noting that Ukraine has attacked more than 150 tankers in the Black Sea and Sea of Azov this month, forcing the Caspian Pipeline Consortium to halt crude loading at its Black Sea terminal.
Refinery Utilization Climbs
Separately, Ship & Bunker reported that data from the U.S. Energy Information Administration showed refinery capacity utilization across the country reached 96.2 percent as of July 17, up from 94.7 percent during the same week in 2025. The EIA also noted that the Midwest and Rocky Mountains regions, designated PADD2 and PADD4, were operating at 100 percent utilization last week.
Does This Matter to You?
Rising crude prices driven by conflict in the Red Sea and Strait of Hormuz can directly influence bunker fuel costs and vessel routing decisions. Attacks on tankers in these key waterways may affect insurance considerations, transit planning, and freight availability for vessels operating in or near the region. As Ship & Bunker notes, analysts are already warning that continued disruption to energy routes could keep oil prices elevated for an extended period, a factor that may filter through to fuel procurement and voyage cost calculations.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
