Trump Threatens Massive Attack as Houthis Blockade Saudi Oil

Brent crude oil prices surged above $100 per barrel on July 23, 2026, following a dual maritime crisis in the Red Sea and the Strait of Hormuz. The Houthis (also known as Ansar Allah) declared a naval blockade of the Bab el-Mandeb Strait against Saudi-linked vessels on July 20, citing retaliation for Saudi strikes on the Sanaa airport. The group subsequently attacked two Saudi tankers, the Encelia and Layla, causing fires on both vessels. While the Houthis granted safe passage to Chinese state-owned tankers from Cosco Shipping, other vessels were forced to reroute, adding significant freight and insurance costs.

This escalation coincides with a renewed military conflict between the United States and Iran. Following the collapse of a June ceasefire, U.S. forces conducted 13 consecutive nights of strikes against Iranian missile, drone, and radar facilities. In response, Iran effectively shut the Strait of Hormuz, drastically reducing oil flows from over 10 million barrels per day to less than two million.

Donald Trump responded by threatening a "massive attack" on Iranian infrastructure and announced that any damages to commercial ships or cargo would be paid for using seized Iranian funds controlled by the United States. Iranian Foreign Minister Abbas Araghchi characterized the nation's defense doctrine as "an eye for an eye," vowing a decisive response. The instability has triggered global inflation fears, pushing U.S. gasoline prices above $4 per gallon and prompting warnings from Goldman Sachs that oil could exceed $120 per barrel by late 2026.