Oil prices rose above $100 a barrel on Friday, July 24, as attacks on two Saudi tankers in the Red Sea intensified fears that the Middle East conflict could disrupt a second vital maritime trade route. Reuters reported that the vessels were attacked as Iran-backed Houthi forces threatened traffic through the Bab el-Mandeb strait, adding pressure to supplies already constrained around the Strait of Hormuz.
Bab el-Mandeb connects the Indian Ocean and Gulf of Aden with the Red Sea and, farther north, the Suez Canal. It is a principal passage for ships moving between Asia, Europe and the Mediterranean. Hormuz, meanwhile, is the outlet for major Gulf energy exporters, so simultaneous disruption around both waterways would leave traders and governments monitoring two separate chokepoints.
Reuters said the escalation pushed crude into a higher price range and made Middle East oil and gas flows the leading near-term question for global markets. NBC News also reported attacks on two tankers and the risk of another bottleneck. The reports did not establish a complete independent account of damage to the vessels, and the full effect on shipping volumes remained unclear on Friday.
The security backdrop also deteriorated on land. U.S. Central Command said the American military had completed a thirteenth consecutive night of strikes on Iran, while reports described continuing Iranian attacks on American bases and regional targets. The conflict therefore links military operations with commercial shipping risks, making insurers, vessel operators and energy buyers reassess routes, costs and exposure.
The consequences could extend beyond the region because higher transport and crude costs feed into fuel prices, inflation and central-bank decisions. Reuters said policymakers in Tokyo, Washington and London would approach the coming week with greater concern about war-driven inflation and weaker growth, while renewed U.S. tariff uncertainty added another risk for markets.
Governments and shipping companies will now watch whether traffic continues through Bab el-Mandeb, whether further tankers turn away, and whether military action expands. The durability of supply disruption, rather than Friday's price move alone, will determine the scale of the economic impact. With no verified resolution reported, both waterways remain central to the immediate outlook for energy security and international trade.
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