Oil crosses USD 100 for the first time in two months as Houthis widen their Saudi blockade

The Houthis claimed they struck two Saudi oil tankers, the Encelia and the Layla, saying the vessels violated the naval blockade they declared on the Kingdom this week as a new front in the conflict rattles global markets, with oil prices rising above USD 100 a barrel yesterday for the first time in two months. Saudi state news agency SPA confirmed the Encelia was left ablaze at the bow after an assault in the Red Sea, with all crew safe.

Some ships seem to be making it through the Red Sea anyway: Two Chinese-operated supertankers made it out yesterday, carrying a combined 4 mn barrels of Saudi crude loaded at Yanbu, according to shipping data.

US President Donald Trump, in a Truth Social post, warned that “from this point forth, any and all damages done to Ships, Cargo, or anything related thereto, will be paid for by Iranian Money that the United States has in its possession, and controls,” without clarifying how the payments would work. He also told Axios in an interview that he’s considering a “massive attack” and is “close to making a decision” on it, and separately said he plans to bomb and destroy bridges and power plants near Tehran in the event of more strikes from Yemen on shipping. Attacks so far have targeted maritime capabilities, missile and drone storage ​facilities, coastal surveillance sites, and air defense assets.

Iran has been strengthening its resources in Yemen, with Reuters reporting that it flew Islamic Revolutionary Guard Corps (IRGC) commanders, military advisers and missile- and drone-related equipment into the country, according to sources familiar with the matter.

All of this means it’s not just oil that’s getting more expensive: CMA CGM will impose an emergency fuel surcharge from 1 August, charging USD 150 per TEU for dry containers and USD 165 for reefers on all long-haul headhaul shipments, according to a statement. Long-haul backhauls and intra-regional trades will face surcharges of USD 75 and USD 90 per TEU. The fee — introduced after renewed fighting around Hormuz pushed fuel prices higher — will remain in place until further notice.

And as more sides get roped into the war… US intelligence is trying to work out whether Russia helped Iran hit CIA facilities in the Gulf. Four people familiar with the matter told Reuters that March drone strikes on at least two CIA stations — one inside the US embassy in Riyadh, another in eastern Iraq — showed a precision that has analysts probing whether Moscow supplied targeting data or upgraded drone tech. No firm conclusion yet, but it's another marker of how far Russian backing for Tehran may extend as the wider conflict widens.

Over in Lebanon, a Lebanese official confirmed Lebanon and Israel will hold their next round of ​US-brokered talks on 4 August in Italy, Reuters reports. This comes after Israel pulled its forces from South Lebanon as part of a US-brokered truce premised on Beirut exerting military authority over Iran-backed Hezbollah forces.