Global oil prices surged on Thursday after attacks on Saudi oil tankers in the Red Sea heightened concerns over disruptions to global energy supplies, pushing Brent crude above $100 a barrel for the first time in nearly two months.

Brent crude, the international benchmark, rose more than 6% in early trading to exceed $100 per barrel, its highest level since the end of May.

U.S. West Texas Intermediate (WTI) crude also climbed more than 5% to nearly $92 a barrel, marking its highest level since June 11.

The gains followed claims by Iran-backed Houthi rebels that they had attacked two Saudi oil tankers in the Red Sea after announcing a naval blockade targeting Saudi Arabia.

The reported attacks have raised fears that the conflict involving Iran and its allies is expanding beyond the Strait of Hormuz, threatening another key global shipping route.

The Bab el-Mandeb Strait, which links the Red Sea to the Gulf of Aden, carries an estimated 12% to 15% of global maritime trade, including millions of barrels of crude oil each day.

Shipping through the Strait of Hormuz has already been severely disrupted, making the Red Sea route increasingly important for global energy markets.

Oil prices have risen by about 35% since the beginning of the month and are now more than 60% higher than at the start of the year.

The surge has also pushed fuel prices higher. In the United States, the national average price of gasoline climbed to $4.09 per gallon on Thursday, according to data from the American Automobile Association (AAA).

Financial markets also reacted to renewed inflation concerns driven by higher energy prices.

The yield on the benchmark U.S. 10-year Treasury note rose to 4.67%, its highest level since January 2025, while the average rate on a 30-year fixed mortgage increased to 6.77%.

The latest escalation came after U.S. President Donald Trump warned of retaliation against Iran following attacks on commercial vessels, while the Houthis claimed responsibility for strikes on two Saudi tankers in the Red Sea.

The conflict has renewed concerns over the security of global energy supplies and the potential economic impact of prolonged disruptions to key maritime trade routes.