Oil Prices Hit $100 Amid Middle East Naval Blockades

Brent crude oil prices surged more than 4 percent to approximately $100 per barrel on July 23, 2026, triggered by dual maritime crises in the Middle East. The price spike follows the effective closure of the Strait of Hormuz by the Government of Iran in response to a U.S. naval blockade, as well as a naval blockade against Saudi Arabia launched by Houthi rebels on July 20, 2026. The Houthi militants claimed responsibility for attacks on two Saudi oil tankers, threatening the Bab el-Mandeb Strait.

Donald Trump, President of the United States, authorized the United States Department of Defense to conduct 12 nights of strikes on Iranian missile and drone facilities. While Trump threatened to bomb further Iranian infrastructure, he claimed that oil prices would eventually decrease. Goldman Sachs warned that if these shipping disruptions persist, prices could exceed $120 per barrel by the fourth quarter of 2026, potentially reducing global oil supply by 7 percent.

The conflict has sparked global inflation concerns, pushing major European stock benchmarks into the red and hardening government bond yields. These market pressures arrive as investors await an interest rate decision from the European Central Bank. While Asian markets ended the day with gains, Wall Street futures remained directionless as traders weighed fuel-led inflation against AI spending concerns.