Brent crude tops $98 as Houthis strike Saudi tankers, Trump threatens Iran

Brent crude surged to $98.44 per barrel on Thursday, a 4.6% gain, after Yemen's Houthi militia claimed drone and missile strikes on two Saudi oil tankers in the Red Sea. The attack, which ignited a fire aboard one vessel 70 nautical miles southwest of Al Shuqaiq, Saudi Arabia, was reported by the United Kingdom Maritime Trade Operations. No casualties were reported. The Houthis said the tankers breached their maritime blockade. Separately, Iran's Islamic Revolutionary Guards Corps announced an explosion on one of three tankers near the Strait of Hormuz, causing the others to reverse course. The attacks follow President Donald Trump's threat to destroy Iranian infrastructure if Iran strikes ships in the Strait of Hormuz. Tehran responded with a threat to retaliate against U.S.-linked energy facilities. The U.S. completed its 12th consecutive night of strikes against Iran's capabilities. Vessel transits through the Strait of Hormuz fell to just 15 on Wednesday, down from about 130 daily before the war. Six ships retreated from the Bab al-Mandab strait after a Houthi warning. U.S. gas prices rose to $4.09 per gallon, up 37% since the war began, and diesel reached $5.21 per gallon, up 39%. The violence follows the collapse of a U.S.-Iran ceasefire earlier this month. Citi had warned that renewed hostilities raised the chances of broader confrontation. Secretary of State Marco Rubio said Iran was not serious about reaching an agreement.