Yemen's Houthis said they attacked two Saudi oil ships traveling through the Red Sea. The attacks pushed oil prices above $100 a barrel for the first time since May 2026 and drew threats of retaliation from both Iran, which supports the Houthis, and the United States.

Houthi military spokesman Yahya Saree announced the strikes on July 22, 2026. He identified the targeted ships as the Encelia and the Layla. According to the Houthi-run SABA news agency, fires broke out on both ships after the strikes. The group said the ships had violated a naval blockade it imposed on the Red Sea, with Houthi-controlled Al-Masirah TV saying the blockade covers both the Red Sea and the Gulf of Aden (The Guardian).

A separate monitoring group, the UK Maritime Trade Operations (UKMTO), reported that a ship was struck on July 22 by an unknown projectile about 70 nautical miles southwest of Al Shuqaiq, Saudi Arabia. UKMTO confirmed the strike caused a fire on board (UKMTO via Yahoo News).

The market response was immediate. Brent crude, a key benchmark for global oil prices, surged more than 6 percent and settled above $100 per barrel on July 23. That was its highest level in nearly two months. Oil prices had risen for five straight trading days, and Brent was up about 40 percent for the month of July alone (Reuters; Washington Post; Al Jazeera).

These strikes did not come out of nowhere. The U.S. military had been carrying out nightly attacks on Houthi positions for twelve straight nights when the Houthi claim was made public (The Journal). At the same time, tensions between Washington and Tehran were already high, with the U.S. conducting additional strikes on Iran, according to Al-Monitor (Al-Monitor).

President Donald Trump responded forcefully. He had previously said he would "take care of" the Houthis if they followed through on their blockade threat against Saudi ports, a warning issued before the tanker attacks. After the strikes, Trump threatened direct action against the Houthis and vowed to punish Iran for the Red Sea attacks, drawing a direct link between the Houthi operation and Tehran (Reuters; The Hill via YouTube).

The broader context here matters for understanding what may follow. The Red Sea is a narrow and busy shipping route — think of it as a highway for global trade, where large amounts of oil and goods pass through every day. Houthi attacks on commercial ships there have periodically disrupted this corridor. The targeting of Saudi ships specifically, rather than the Israel-linked vessels the Houthis have gone after before, narrows the threat. It signals a direct pressure campaign against Saudi Arabia's capital, Riyadh, framed by the group as enforcement of a blockade across both the Red Sea and the Gulf of Aden.

Trump's decision to blame Iran for the strikes raises the possibility of a wider conflict. Iran provides financial and military backing to the Houthis — what analysts call a "proxy" relationship. By vowing to punish Tehran for Houthi operations, the administration is treating that backing as reason enough to retaliate against Iran directly. If carried out, that would expand the conflict far beyond Yemen. The combination of ongoing U.S. strikes on Houthi targets, reported strikes on Iran itself, and now a direct threat of punishment against Tehran leaves little room for diplomacy. Each side has taken public positions that are hard to back away from without appearing weak.

Oil markets are pricing in that very risk. A 40 percent monthly jump in Brent, five straight days of rising prices, and a breach of the $100 mark all reflect market expectations that further disruption to Red Sea shipping is more likely now than it was weeks ago. Whether that fear continues to push prices up depends on who acts next — the Houthis, Iran, or Washington — and whether any of the three decides that holding back serves their interests better than escalating further.