Energy & Resources
Oil tops $100 as Red Sea attacks weigh on markets
Brent crude climbed above $100 a barrel on Thursday as Iran-backed Houthi rebels targeted shipping in the Red Sea and US President Donald Trump threatened them with "major military punishment" in response. The international Brent North Sea contract rose 7.0 percent to $100.69 a barrel around 2030 GMT, while West Texas Intermediate rose 6.2 percent to $92.19.
The Red Sea attacks added to concern about oil supplies while deliveries through the Strait of Hormuz were already severely impaired. Saudi Arabia had been using the Red Sea to export millions of barrels of oil that would normally pass through the Strait of Hormuz, meaning a closure of that route would further reduce available supply. Iran said it would keep striking the Gulf region while it remained under attack from US strikes.
Andy Lipow of Lipow Oil Associates said a failure by Saudi Arabia to move crude redirected from the Persian Gulf would worsen global supply disruption at a time when commercial inventories were being drawn down. Analysts also said higher oil prices could increase inflation pressure and raise the prospect of interest rate hikes. Sovereign bond yields rose, adding pressure on government spending.
European Central Bank head Christine Lagarde said reports of Houthi attacks were "alarming" but came too late to be included in the ECB's Thursday decision to keep interest rates unchanged. She said the Red Sea situation was already affecting Brent prices.
US stocks closed lower, also pressured by company earnings and concern about artificial intelligence spending. Alphabet fell 6.9 percent and Tesla dropped 14.5 percent after their earnings reports drew scrutiny over large capital spending plans. Investors are also waiting for results from Microsoft, Meta and Amazon next week, with attention on their spending plans. All three companies ended sharply lower on Thursday.
The Dow Jones Industrial Average closed down 1.0 percent at 51,711.65, the S&P 500 fell 1.2 percent to 7,408.30 and the Nasdaq Composite lost 2.2 percent to 25,137.69. In Europe, London's FTSE 100 fell 0.7 percent, Paris's CAC 40 dropped 1.6 percent and Frankfurt's DAX also fell 1.6 percent. Tokyo's Nikkei 225 rose 0.5 percent, Hong Kong's Hang Seng Index gained 1.3 percent and Shanghai's Composite index rose 0.3 percent.
Energy stocks were among the sectors that advanced. Defence shares also rose, with RTX up 7.3 percent and Lockheed Martin up 10.5 percent after both reported strong results that the source linked to US Pentagon spending in the context of the US-Iran war. In currencies, the euro fell to $1.1377 from $1.1412 on Wednesday, the pound fell to $1.3315 from $1.3375, the euro rose to 85.44 pence and the dollar rose to 163.85 yen.
Update
Brent North Sea crude was up 7.0 percent at $100.69 a barrel around 2030 GMT, while West Texas Intermediate was up 6.2 percent at $92.19.
Wall Street closed lower, with the Dow down 1.0 percent, the S&P 500 down 1.2 percent and the Nasdaq Composite down 2.2 percent.
Alphabet fell 6.9 percent and Tesla fell 14.5 percent after earnings reports and scrutiny of capital spending.
European Central Bank head Christine Lagarde said reports of Houthi attacks were alarming but came too late to affect the ECB decision to hold rates steady.
RTX rose 7.3 percent and Lockheed Martin rose 10.5 percent after strong results linked in the source to US Pentagon spending during the US-Iran war.
Source note: AFP news report published on 23 July 2026 at 20:50:58 UTC.
Update
Brent crude moved back above $100 a barrel for the first time since May.
The source says the current impact could be greater because the Middle East conflict shows no sign of ending and reserves have already been partly drawn down.
The International Energy Agency warned in mid-July that world production was around 9.4 million barrels a day below pre-war levels.
Saudi Arabia has used the Red Sea port of Yanbu as an alternative route since the Strait of Hormuz was closed to its oil exports, allowing exports of about three quarters of its pre-war level.
Oxford Economics said oil could eventually pass $160 a barrel if both the Red Sea and the Strait of Hormuz were effectively closed to traffic.
Rysted Energy said spare production capacity has been partly used and inventories are lower than when the war began.
The IEA cited cushioning factors including higher exports from several countries, alternative routes for Saudi and UAE oil, and reserves held by around 30 IEA countries.
Kpler calculated earlier this month that there was a record 1.35 billion barrels of oil already at sea.
European Central Bank President Christine Lagarde said the Red Sea situation was having an impact and said some ECB governors had already raised the possibility of a rate hike.
Source note: AFP news report published on 23 July 2026 at 18:09:59 UTC.
Update
Brent North Sea crude was listed around 1530 GMT as up 7.2 percent at $100.83 a barrel, while West Texas Intermediate was up 6.3 percent at $92.31.
Wall Street's main indices were lower in late morning trading, with the Nasdaq Composite down 2.8 percent around 1530 GMT.
European markets closed lower, while most Asian markets rose after a rebound in regional technology shares.
European Central Bank head Christine Lagarde said some policymakers had considered raising rates before all voted to hold rates.
Alphabet shares fell more than seven percent after it raised its full-year AI capital expenditure estimate to as much as $205 billion.
The dollar strengthened against major rivals, and the yen hit a fresh four-decade low against the dollar.
Source note: AFP news report published on 23 July 2026 at 15:54:59 UTC.
Update
Brent North Sea crude surged more than six percent and touched $100 a barrel.
Trump threatened the Houthis with major military punishment after Red Sea attacks.
Iran vowed to keep striking the Gulf region while under US attack.
Saudi Arabia had been using the Red Sea to export oil that usually moved through the Strait of Hormuz.
Wall Street's main stock indexes fell more than one percent at the start of trading.
Alphabet shares fell after investors reacted to a higher AI capital expenditure estimate, and Tesla shares fell after weaker-than-expected profits and higher capital expenditure.
The dollar firmed and the yen hit a fresh four-decade low against the dollar.
Source note: AFP news report published on 23 July 2026 at 14:10:23 UTC.
Update
Lagarde said the Houthi attack came too late to affect the ECB's interest-rate deliberations on Thursday.
Lagarde said the attack was affecting Brent prices, which she said were changing almost by the hour.
The ECB was monitoring the inflationary impact of the Iran war.
Source note: AFP news report published on 23 July 2026 at 13:37:16 UTC.
Update
ECB President Christine Lagarde described the Houthi Red Sea tanker attack as "alarming".
Source note: AFP news report published on 23 July 2026 at 13:24:50 UTC.
Update
Brent North Sea rose more than six percent to reach $100 a barrel.
The source linked the rise to Houthi strikes on oil tankers in the Red Sea.
Donald Trump threatened the Houthi rebels with "major military punishment".
West Texas Intermediate rose 5.0 percent to $91.19 a barrel.
Source note: AFP news report published on 23 July 2026 at 13:15:46 UTC.
Update
Brent North Sea oil reached $100.
Source note: AFP news report published on 23 July 2026 at 13:04:33 UTC.
Update
Brent North Sea crude rose as much as five percent and was quoted at $98.60 a barrel around 1100 GMT.
Houthi rebels claimed to have struck two Saudi oil tankers in the Red Sea.
Iran vowed to keep striking the region while it remains under US attack.
European markets were weaker in midday trading, with London, Paris and Frankfurt all down.
Centrica shares fell nine percent after the British Gas owner announced plans to cut 1,300 jobs and issued a mixed earnings update.
STMicroelectronics shares fell 15 percent after sales forecasts missed expectations, while TotalEnergies shares rose three percent after reporting doubled second-quarter net profit.
Source note: AFP news report published on 23 July 2026 at 11:43:54 UTC.
Update
Seoul rose more than four percent, helped by gains in SK hynix and Samsung, while Tokyo was supported by Advantest and SoftBank.
London, Paris and Frankfurt fell while several Asian markets, including Hong Kong, Shanghai, Sydney, Taipei, Wellington, Manila, Bangkok and Jakarta, rose.
Brent climbed four percent to $97.80 a barrel and WTI rose 3.1 percent to $89.51 a barrel around 0810 GMT.
President Donald Trump threatened to strike one Iranian bridge or power plant for each attack on shipping in the Strait of Hormuz, and Iranian Foreign Minister Abbas Araghchi said Iran would respond in kind to attacks on its infrastructure.
Yemen's Houthi rebels claimed to have struck two Saudi oil tankers in the Red Sea on Wednesday after threatening to blockade Saudi ports.
Money markets were pricing in about a 30 percent chance of a Federal Reserve rate increase, according to Bloomberg.
Trump trade envoy Jamieson Greer signalled that Washington was preparing new levies on dozens of countries.
The yen hit a fresh four-decade low against the dollar.
Source note: AFP news report published on 23 July 2026 at 08:25:37 UTC.
Update
Alphabet said it may spend as much as $205 billion on AI this year, more than expected.
Seoul rose more than four percent, helped by SK hynix and Samsung, while Tokyo was supported by Advantest and SoftBank.
London, Paris and Frankfurt fell.
Brent rose above $95 on Wednesday and was at $96.65 around 0715 GMT, while WTI was at $88.51.
Donald Trump threatened to strike one Iranian bridge or power plant for each attack on shipping in the Strait of Hormuz, while Abbas Araghchi said Iran would respond in kind.
Yemen's Houthi rebels claimed strikes on two Saudi oil tankers in the Red Sea after threatening to blockade Saudi ports.
Money markets were pricing about a 30 percent chance of a Federal Reserve rate increase, according to Bloomberg.
The yen hit a fresh four-decade low against the dollar, with concerns linked to the Bank of Japan's pace of tightening and possible Federal Reserve action.
Source note: AFP news report published on 23 July 2026 at 07:36:06 UTC.
Uncertainty notes
The future effect of Red Sea shipping disruption on oil supply and prices remains uncertain.
The prospect of higher inflation and interest rate hikes is presented as an analyst concern, not a confirmed outcome.
Source
AFP news report published on .