On Thursday, July 23, 2026, global oil prices crossed the $100 per barrel mark for the first time since May. This surge followed claims by Houthi militants in Yemen that they struck two Saudi oil tankers in the Red Sea, escalating tensions in a region already affected by the Iran war.

Brent crude futures, the global benchmark, briefly topped $100 before settling near $99.70, representing a roughly 28% increase over the past month and reaching the highest levels since May 26. The reported tanker attacks, alongside ongoing strikes between the United States and Iran, have heightened fears of a worsening oil shock, described as one of the largest in history.

The spike in oil prices has had immediate economic impacts. Major U.S. stock indexes fell in response, with the Dow Jones Industrial Average dropping 375 points (0.7%) and the S&P 500 declining by the same percentage. Meanwhile, the average price of a gallon of gasoline in the United States stands at $4.09, according to AAA, after surpassing $4 earlier in the week.

Last month, oil prices had briefly fallen to their lowest levels since before the Iran war began in late February, following news of a preliminary agreement to end the conflict. However, the recent escalation, including Iran's firing on oil tankers in the strait, has reversed that trend.

A photo from June 25, 2026, shows a person pumping gas at a Valero station in Austin, Texas, illustrating the domestic impact of these global developments.

Sources