Global oil prices crossed $100 a barrel on Thursday [1] after Houthi militants claimed to have struck two Saudi tankers [3] in the Red Sea.

The price spike reflects immediate market anxiety over supply chain stability in one of the world's most critical shipping lanes. If regional tensions escalate, the cost of fuel is expected to remain volatile or continue climbing.

Patrick De Haan, head of petroleum analysis at GasBuddy, said drivers should fill up their tanks soon. De Haan said the current market trajectory suggests prices will keep rising following the disruption in the Red Sea [1].

This is the first time global oil prices have reached the $100 per barrel threshold since May [2]. The surge follows the announcement from Houthi militants regarding the two targeted Saudi vessels [3].

Market analysts track these fluctuations closely because the Red Sea serves as a primary artery for oil moving from the Middle East to European and Asian markets. Any perceived threat to these tankers creates an immediate risk premium in the price of crude oil [1].

While the immediate impact is seen in global benchmarks, the effect typically trickles down to consumer pumps within days or weeks. De Haan said the upward pressure on prices is likely to persist as the situation in the Red Sea unfolds [1].

“Global oil prices crossed $100 a barrel on Thursday”

The crossing of the $100 threshold indicates a high level of geopolitical risk being priced into the energy market. Because the Red Sea is a narrow chokepoint, attacks on tankers force shipping companies to take longer, more expensive routes, which increases the landed cost of oil and puts upward pressure on inflation for consumers globally.