Oil prices jump after Houthi attacks on Saudi tankers

Brent crude jumped to almost $99 a barrel after Yemen’s Houthi movement claimed strikes on two Saudi tankers, pushing up the cost of the oil that helps set U.S. gasoline prices, shipping charges and broader inflation pressure. U.S. crude also surged sharply as traders weighed whether attacks in the Red Sea could disrupt energy flows for more than a day or two.

Saudi authorities confirmed a strike on one of the ships, which were identified as the Encelia, a products carrier, and the Layla, a very large crude carrier. The Houthis said they used ballistic missiles, cruise missiles and drones, and framed the attack as part of a blockade on Saudi shipping in the Red Sea. The escalation added to anxiety over a waterway that carries a major share of global energy traffic.

Oil markets reacted fast. Brent rose to almost $99 and, in some market reports, topped $100 for the first time since May. U.S. crude also climbed sharply, with one market readout putting West Texas Intermediate above $90 and another showing it up more than 5% to almost $92. The move reflected concern that any fresh threat to tankers near Saudi Arabia could ripple through fuel costs at a time when traders were already worried about supply disruptions.

The Washington fallout moved on a separate track but fed the same geopolitical strain. The U.S. Senate blocked the latest attempt to rein in President Donald Trump’s war powers in Iran, rejecting the resolution 47 to 49. Susan Collins of Maine was the only Republican to join Democrats in support, while the House approved a separate rebuke of Trump the same day.

The vote was the latest clash in Congress over whether lawmakers should force limits on military action tied to Iran. It followed earlier fights over war powers and reflected a deep split over the constitutional balance between the executive branch and Congress when U.S. forces are involved in the Middle East. With tanker traffic under pressure in the Red Sea and lawmakers still fighting over Trump’s authority, the market is left to price not just the next attack, but how long the disruption can last.