Oil prices rose after a Saudi tanker was targeted in the Red Sea, threatening to escalate the war between the US and Iran, and causing deeper supply disruptions.

Brent crude rose 2.7% to $96.50 per barrel, the highest since early June, and WTI crude rose about 2% to trade at $88.50 per barrel.

Saudi Arabia's General Transport Authority said that the ship (ENCELIA), owned by a Saudi company, was targeted while sailing in the Red Sea, resulting in a fire in its bow, confirming the safety of all crew members, and that relevant authorities are taking all measures to secure the ship and its crew and protect the marine environment.

Thu, 23 2026

Riyadh had condemned Houthi threats to navigation, vowing to protect its ships and continue supporting the Yemeni people, while the coalition forces affirmed that they would respond to threats to passing ships with full firmness and force.

These attacks on tankers in the Red Sea are likely to increase tensions in the conflict that has disrupted traffic through the Strait of Hormuz, and the Red Sea has become a major export route increasingly relied upon by Saudi Arabia, with shipments from the Kingdom's ports on it rising to record levels in recent weeks.

US strikes on Iran continue

The US continued to launch strikes on Iran for the 12th consecutive night, stating that the mission would continue to further undermine Iran's ability to threaten civilian sailors and commercial ships transiting regional waters.

Washington and Tehran downplayed the possibility of peace talks, increasing the likelihood of continued fighting leading to more pressure on oil markets, and the US threatened to bomb bridges and power plants, and launch an attack on Mount "Pik Axe", a site suspected of being a secret nuclear site in Iran.

Tue, 21 2026

Oil prices had jumped 30% this month amid attacks targeting several ships in the Strait of Hormuz in an attempt to gain control of the passage through which five global energy supplies passed before the war.

Despite the recent rise, benchmark crude prices remain below levels recorded during the war, when Brent reached $126 per barrel, indicating that markets do not currently expect a return to all-out war.